Taxes in China

The Chinese tax rates are rather set in stone. They are easy to look over and to determine. Best of all, these tax rates do not change often. The last time the taxes where changed happened in September of 2011.
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This makes it easier to avoid any possible issues that might come when annual tax changes are made to the brackets. This is a listing of all the current income tax rates for inside of China.Taxes in China 2015

  • When making between 0 and 1500 RMB, the tax rate is 3 percent and there is 0 quick deduction.
  • When making between 1500 and 4500, the tax rate is 10 percent with a quick deduction of 105.
  • When making between 4500 and 9000 the tax rate is 20 percent and the quick deduction is 555.
  • When making between 9000 and 35000 the tax rate is 25 percent and the quick deduction is 1005.
  • When making between 35000 and 55000 the tax rate is 30 percent and the quick deduction is 2755.
  • When making between 5500 and 80000 the tax rate is 35 percent and the quick deduction is 5505.
  • When making anything over 80000 the tax rate is going to be 45 percent and the quick deduction on the taxes is 13505.

In China, the individual income tax makes up a very small percentage of the amount of money the country actually brings in in total revenue. In fact, the individual income tax only makes up 3.2 percent of the total revenue. The highest revenue builder inside of the country is the VAT, which is paid on most goods and products that are being shipped out of the country. This makes up 42.3 percent of all the total revenue and 46.4 percent of the total GDP. The next highest tax incomes for the country is the 16.4 percent the business tax covers, followed by the 11.3 percent the enterprise income tax covers and then the 8.6 percent, which the consumption tax covers. Everything else makes up less than 4.3 percent individually.

As for the Chinese business tax, for someone who does business inside of the country of China, there is a rather straight forward tax. The majority of all corporate tax is 25 percent across the bored. However, some industries do qualify for a 15 percent tax rate. This can vary, depending on the region of the country the business is located, who the business employees and several other factors. So, for someone doing business in China, it is well worth the effort to look into how it is possible to land this 15 percent corporate tax (if it is possible).

There are also special tax holidays available for qualified tax payers, which can help reduce the amount of taxes the business needs to pay. China is one of the countries that has seen a rather sizable drop in the corporate tax, as in 2007 it sat at 33 percent, but then dropped to 25 percent in 2008 and has remained the same since.