Under the Notice Concerning the Taxes Applicable to Foreign Investment Enterprises, Foreign Enterprises and Foreign Individuals issued by the State Administration of Taxation in1993, foreign investment enterprises in China (FIEs) may be liable to pay some or all of the following taxes levied throughout China:
- Enterprise income tax, payable on either net profits of a company, or a deemed profit calculated on the basis of expenditures, or else payable as a 20% with-holding tax;
- Individual income tax, for which an employer is the with-holding agent and party against whom the tax authorities can collect of the individual fails to pay;
- Business tax, payable on royalties and rental income
- Value-added tax (VAT), a turnover tax;
- Resources tax, payable only if certain natural resources are exploited by the company;
- Stamp duty, payable on certain documents;
- Urban real estate tax, one of the various types of land tax;
- Consumption tax, payable on certain luxury items;
- Animal slaughter tax, payable only by those involved in such activity;
- Land value-added tax, a conveyancing tax; and
- Vehicle and vessel licence plate tax, required of parties which own or register a motor vehicle.
A number of other taxes are often charged by various local authorities. For a brief description of the enterprise income tax, business tax, VAT, Urban real estate tax, resources tax, and stamp duty please click here.
For further information on this please contact Luke Filei on luke.filei@cms-cmck.com or +86 10 6590 0389 in Beijing or +86 21 6289 6363 in Shanghai.
