Startup
Home Business Tax Services in China: A Need to Know

Tax Services in China: A Need to Know

4 min read
0
116

If you are looking for tax services in China, there is a lot of information to take into consideration before making any decisions. The first thing you need to consider is the location of your business and whether or not it will be registered with the Chinese government. If you are an individual living in China, then this decision does not apply to you. This article will cover how taxes work if your company has been registered with the Chinese government as well as how they work if they have not been registered. We will also discuss some general rules that apply no matter what type of business entity one might be operating under.

The first thing that you need to know is that China has a corporate tax system

that

basically

works on

the same principles as in any other country. There are different rates of taxation depending on the amount of income earned in the year, whether or not it was generated domestically or internationally and what type of

income it is. For example, if you are a company in China and your revenue for the year was under 500,000 RMB (the equivalent of around $80,000 US), then you will pay an additional 15% fee on top of that amount. If you earn more than 500,000 RMB then you will be taxed at a rate of 25%. If your business is registered with the Chinese government and has been for over one year, then there are additional taxes that must be paid. This includes an income tax which usually ranges from 20%-30% depending on how much revenue was earned in the previous year. There is also a value-added tax (VAT) which is 17% and can be paid either by the consumer or the business owner.

Taxes are determined at the end of every year for individuals as well, but they work differently than with businesses. The first thing to consider when trying to determine how much you will pay in taxes is the value of your assets. If you have a yearly income under 20,000 RMB (around $3000 US) then you will not pay any taxes at all on that income. For those who earn between 20,000 and 50,000 RMB per year there are two different taxation rates – 30% for individuals and 45% for individuals who are married. If you earn more than 50,000 RMB per year then the taxation rate is 40%.

The Chinese tax system might seem confusing at first, but it works in much the same way as other countries around the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

All You Need to Know About Laser Treatment for Hair

Problems like androgenetic alopecia are common these days.  Unfortunately, people cannot s…