China Taxation System Highlight for Investors from Overseas

China is the second largest economy in the world, while attracting many more global investors into the China. In order to run the business in a most cost-efficient way. Before making an investment decision, we suggest investors to understand the China taxation system and all potential relevant taxes that will incurs.

In addition, different type of investment activities will trigger different types of taxation. Within the China taxation system, there are a total of 18 different kinds, which can be divided into 3 categories according to their nature.

Goods and services taxes ( GST) 

  1. Value Added Tax
  2. Excise Tax / Tariff
  3. Vehicle Purchase Tax
  4. Customs Duty

Income taxes ( Profit Tax) 

  1. Corporate Income Tax
  2. Individual Income Tax

Property and relevant taxes 

  1. Land Appreciation Tax
  2. Real Estate Tax
  3. Urban and Township Land Use Tax
  4. Farmland Occupation Tax
  5. Deed Tax
  6. Resources Tax
  7. Vehicle and Vessel Tax
  8. Stamp Duty
  9. Urban Maintenance and Construction Tax
  10. Tobacco Tax
  11. Vessel Tonnage Tax
  12. Environmental Protection Tax

Is it the Tax Bureau response for collecting all kinds of tax?

Both the Custom Authorities and Tax Bureau are responding for tax collection.

The tax bureau is responding to collect 16 types of tax. While the Custom Authorities are responding to Custom Duty and Vessel Tonnage Tax. The Custom Authorities also are assisting to collect the Value Added Tax and the Excise Tax / Tariff on imported goods.

For further information, please contact us.


Leave a comment

Your email address will not be published.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