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 […]
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.
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 […]
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 […]
They should be amortized over 5 years starting from the following month of business operation.
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
CIT should be paid by a withholding agent, who usually is the payer in China. Any income derived from China such as interest, rental, royalty, etc., shall be normally taxed at 20% on the gross incomes. However, if the taxpayer’s homeland has entered tax treaties with China, the tax rate shall be reduced to 10%.
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 […]
Yes. But proper documents evidencing the losses should be filed to local tax authority for approval and filing.
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.