Taxes on Chinese companie

Generally, the following taxes are involved in starting a company in China:

Value-added Tax: It levies tax on the value-added amount in the process of commodity circulation. The tax rates for general taxpayers are 13%, 9% and 6%, while the levy rate for small-scale taxpayers is generally 3% (which may be lower when there are preferential policies).

Corporate Income Tax: It is levied on the production and business operation income and other incomes of enterprises. The basic tax rate is 25%. Small and micro enterprises with low profits enjoy preferential tax rates, and high-tech enterprises are taxed at a rate of 15%.

Urban Maintenance and Construction Tax: It takes the actually paid value-added tax and consumption tax as the tax basis. The tax rate is 7% in urban areas, 5% in county towns, and 1% in areas other than urban areas, county towns.

Taxes on Chinese companie

Educational Surcharges and Local Educational Surcharges: They also take the actually paid value-added tax and consumption tax as the tax basis. The rate of educational surcharges is 3%, and that of local educational surcharges is 2%.

Stamp Duty: It taxes the act of signing and receiving legally valid vouchers in economic activities. The tax rates vary according to the types of vouchers.

Urban Land Use Tax: It taxes units and individuals that use urban land according to the actual occupied land area. It adopts a fixed tax rate.

Real Estate Tax: It taxes houses. The tax rate is 1.2% when calculated based on the residual value of the property, and 12% when calculated based on the rental income.