• The standard rate of VAT in China is 13%.V.A.T. is imposed on sale and import of goods and supply of certain services.
  There is a reduced rate of 9% that applies to products such as books and types of oils.
• There are laso reduced rates of 5% and 6%.
• Exporters are entitled to V.A.T. refund for materials bought in China.
• Small businesses with a turnover of less than the legally defined limit pay value added tax at 3%.
• V.A.T. returns are filed monthly by 15th of the following month.

China Consumption Tax

• The tax is imposed inter-alia on sale of alcohol, petrol, jewellery and cars.
• The relevant rates are 1%-56%.
• Consumption tax returns are filed monthly.

Real Estate Tax in China

• A tax of 1.2% is imposed on owners of business rented real estate, according to the value of the real estate.
• Alternatively tax on rental income is 12% of the rental price. Individuals may pay 4% for rental of residential real estate.

Education Surcharge

• All taxpayers of indirect taxes in China must also pay an additional 3% education tax.
• Additional 2% local education tax is paid in Beijing.

Urban Construction and Maintenance Tax

• All taxpayers of indirect taxes in China must pay this addition surcharge.
• The rates are 1% for low populated areas, 5% in country areas and 7% in big cities.
• For foreign enterprises the tax is imposed from 1.1.2011 onwards.