Taxes in China
The main source of income for the treasury of the People's Republic of China is excise taxes. As of 2021, 1 people live in it. This country is known for having one of the strongest economies in the world. In this aspect, it seriously competes with the United States.
The state does not have the concept of “shadow economy”. Every citizen of the People's Republic of China pays excise tax monthly. Also, a similar fee is provided for migrants working in this state for a certain time.
China is an attractive country for businessmen from all over the world
The infrastructure here is well developed. China tax system is controlled by two bodies: the department of central taxes, subordinate to the State Tax Administration (Main State Tax Administration) and the department of local duties. The latter is also under the control of the GGNU and the provincial-level people's government.
Taxes in China differ in many ways from the EU countries and other powers. This system is not easy to understand. The specialists of the E-COMMERCE BROKER company know everything about duties in China, and we are ready to help you open a business in the Middle Kingdom. Our team will solve any organizational issues, help you register a company, obtain the necessary licenses and open a bank account.
Main types of duties in the Middle Kingdom
The main fees in the People's Republic of China are:
- on company income – 25%;
- for the income of individuals – 3-45%;
- for added value – 0,13-17%;
- consumer – 17%;
- for real estate – 1,2-12%;
- for the increase in land value - 30-60%;
- transport – 10%;
- stamp duty – 0,1%.
In addition to the listed duties, the People's Republic of China imposes excise taxes on children, foreigners, tobacco products, customs and other fees. If the law is violated, the fines will be quite severe. Usually this is five times the amount of debt with repayment of the main obligation.
Taxes in China for business are the most important deduction for the state
But, if the enterprise has a low income, the authorities may reduce the duty from 25 to 20%. It is important to know that foreigners, like citizens of the Middle Kingdom, are not exempt from mandatory fees to the treasury. But here everything depends on the length of stay in the Asian state.
If a foreign citizen has stayed in the territory of the PRC for 183 calendar days within 1 year, then he becomes a tax resident. He needs to pay duty both on income received in the Middle Kingdom and abroad. But there are many nuances here that only experienced specialists can understand.
What kind of assistance does the E-COMMERCE BROKER Company offer?
Tax royalty system in China quite difficult for foreign entrepreneurs to understand. The E-COMMERCE BROKER company will help you find out all the details of payments to the treasury of the Celestial Empire and organize the following:
- register a company in China;
- open a bank account;
- will provide accounting services;
- will help you hire staff.
Tax rates in China seem quite high for foreigners who do not know all the intricacies of paying fees to the treasury of this Asian country. The People's Republic of China is a state with established rules. This country is very promising for business.
Its government, despite its strictness, encourages foreign capital. We can do everything to ensure that your business begins to develop successfully in the Middle Kingdom. With our help, you will start receiving excellent income!
