China Taxation: Law, Practice and Planning


Overview   |   Authors
China Taxation: Law, Practice and Planning

Dec 2005
LooseleafClick here for more information on Release Two.

(Release 4 published in March 2008)

(Release 3 published September 2007)

(Release 2 published June 2007)

New regulations and rules have relaxed foreign exchange restrictions over domestic individuals and took effect as of February 1, 2007. The China's Tax Reform lead by the National People's Congress (NPC) passed the unified enterprise income tax law on March 16, 2007. The new law will be effective as of January 1, 2008. The new law aims to unify the application, scope, tax rate, tax deductions, and preferential tax policies for both foreign-invested enterprises (FIEs) and domestic enterprises.

The State Council will formulate and promulgate detailed implementation rules on the basis of the new law prior to the date it will come effect i.e. January 1, 2008.

Laws and regulations that will be repealed on January 1, 2008 include: Income Tax Law of the PRC on Enterprises with Foreign Investment and Foreign Enterprises, Provisional Regulations of the PRC on Enterprises Income Tax.

The current Release Four will contain two new parts on Value Added Tax and Tax Administration and Procedures which are important for investors, traders and businesses to understanding the rules behind China's system for taxing goods and services, how to calculate and avoid any pit-falls with discussions on the arrangements under the new Enterprise Income Tax Law (EIT) where appropriate.

"The VAT revenue used to account for almost half of the China's total tax revenue. While the percentage has dropped to about 30% in 2007, the VAT revenue remains the largest among all types of tax revenue."

Release Three will include parts on Stamp Duty and Deed Tax which will be relevant to your contracts and land ownership and use in China.

Release Two, includes the following new parts: Accounting Issues in China Taxation, Individual Income Tax and Business Tax.

This manual presents accurate and up-to-date information and a clear and detailed analysis of all facets of taxation in China. Practical examples permeate throughout the manual, as does tax planning advice provided by tax practitioners with extensive experience in dealing with the Chinese tax system and tax officials with first-hand knowledge of the procedures and workings of the Chinese tax administrations at the State and provincial levels. Essential forms are presented bilingually where relevant within the text and additional useful materials are included in the Appendices.

This manual will be useful to corporate tax directors / managers, tax advisors, lawyers, CPAs, CFOs, CEOs, entrepreneurs and investors who are involved with or interested in businesses, investments, property ownership and financial transactions in China.

Contents include an overview of the Chinese taxation system, discussions on the different types of Chinese taxes, calculations and a comprehensive breakdown of Foreign Investment Enterprise and Foreign Enterprises Income Tax. There are dedicated chapters to each area of taxation for example the latest concerning Individual Income Taxation, Value Added Tax, Consumption Tax, Real Estate Tax and many, many more. Also hot topics like Transfer Pricing and International Aspects of Chinese Taxation for cross-border businesses and useful appendices, including bilingual forms for the practitioner.

Jurisdiction: People's Republic of China