文档介绍：Dezan Shira & Associates
CHINA TAX OVERVIEW & CIT UNIFICATION UPDATE
© 2007 Dezan Shira & Associates Ltd. All rights reserved.
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Index
Part One
China CIT Unification
Part Three
Implementation Rule of EIT & FEIT . New Rule
1
Part One
China CIT Unification
2
Part One: China CIT Unification
5
Expenses Deduction
4
Grandfathering Rule
3
1
2
Residence Concept
Tax Rate
Tax Incentives
3
Residence Concept
Item
Definition
Tax Implication
China tax resident
Enterprises established in China
Tax on worldwide e
Foreign enterprises established outside China but its effective management is based in China
Non-China tax resident
Enterprises established outside China
Tax on China-sourced e
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Example Help You to Understand the Definition
5
Conclusion of the Sample
Source of e
Current Tax Law
New Law
e derived from China
PE, pay tax
Pay tax as residence
e derived from outside China
Exemption
Pay tax as residence
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5
Expenses Deduction
4
Grandfathering Rule
3
1
2
Residence Concept
Tax Rate
Tax Incentives
Part One: China CIT Unification
7
Main Changes—Tax Rate
Item
Tax rate
Applicable Enterprises
Standard Rate
25%
Most enterprises
Reduced Rate
20%
Small and thin-profit enterprises
Withholding e Tax (“WHT”)
20%
(Reduced to 10%)
es derived from profits, interest, rentals, royalties and other es from sources in China.
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Illustration for small and thin profit enterprise
Tax rate
20%
Recognition criteria
For manufacturing enterprises
Total assets < RMB 30 Million
Total employees <100 persons
Taxable e < RMB 300,000
For non-manufacturing enterprises
Total assets < RMB 10 Million
Total employees < 80 persons
Taxable e < RMB 300,000
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