How fixed assets are depreciated?

Enterprises should reasonably specify anticipated net residual value according to fixed assets’ nature and uses status. Fixed assets’ anticipated net residual value rates can not be changed once they are determined. The depreciation years of different assets regulated by tax law are set out below. No. Types of Fixed Assets Depreciation years 1 Buildings 20 […]

How to calculate CIT for capital gains?

There is no specific rule on capital gains currently in China. Capital gains should be consolidated to profit and loss of the company and pay corporate income tax if taxable income is arrived.

What is the dispute procedure should I follow where tax disputes arise?

No. of step Party to take action Action to take Time limit   1   Taxpayer   Pay tax   As stipulated by tax law 2 Taxpayer   a)       Apply to the tax authority at a higher level for reconsideration b)       or directly go to step 4 Within 60 days from the receipt date of tax penalty […]

What is the implication should I not comply with relevant CIT rules?

No. Types of non-compliance Fine   1   Failure to pay tax on a timely basis   0.05% per day on the balance due 2   Failure to do, change or cancel tax registration, or submit tax return and financial statements within time limit RMB 5,000 or less   3   Failure of the reset […]

When should I do tax filing?

No. Type of return Time limit   1   Quarterly tax return   Within 15 days after each quarter   2   Annual return   By the end of April each year   3   Withholding tax return Within 5 days after the payment is made

What is the framework of privileged CIT?

No. Item Tax Rate   1  Geographical policy   Production-oriented enterprises established in a) Special Economic Zone, and Economic & Technology Development Zone   b) Coastal area           15%     24% 2  Newly established enterprise policy   Production-oriented enterprises with operating period over 10 years   First 2-year exemption followed […]

Can donations be deducted before tax?

Donations can only be deducted before tax when they are made to non-profit social charity institutions subject to a ceiling according to the revenue of the company.