- 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.
- 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.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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