File #2310: "2018_Book_IntroductionToChineseFiscalSys.pdf"
Text
1|Preface|5
1|Contents|6
1|1 Introduction to Taxation|10
2|1.1 Definition and Purpose|10
2|1.2 Basic Principles of Taxation|10
1|2 Legislative Framework|15
2|2.1 Brief History|15
2|2.2 Legislative Organs|16
3|2.2.1 State Council|19
3|2.2.2 Ministry of Finance|22
3|2.2.3 State Administration of Taxation|24
2|2.3 Local Bureaus|26
3|2.3.1 Tax Laws and Classification in China|26
1|3 Taxpayers|29
2|3.1 Resident Enterprises|29
3|3.1.1 Enterprises Organized Under Chinese Law|29
3|3.1.2 Enterprises Organized Under Foreign Laws|35
2|3.2 Non-resident Enterprises|37
3|3.2.1 Foreign Company Carrying on Trade or Business in China|37
3|3.2.2 Foreign Company Receiving Income from China that Is not Connected with Establishment in China|41
3|3.2.3 Representative Office of Foreign Enterprise|41
2|3.3 Individual Taxpayers|43
3|3.3.1 Individual Income Tax|43
1|4 Direct Taxation in China|44
2|4.1 Individual Income Tax|44
3|4.1.1 History|45
3|4.1.2 Residency and Domicile|46
3|4.1.3 Taxation of Types of Income|49
3|4.1.4 Eligible Deductions and Exemptions|50
3|4.1.5 Tax Rate and Calculation|51
3|4.1.6 Production and Business Income|51
3|4.1.7 Exemptions, Tax Credits, Reductions, and Other Deductions|57
3|4.1.8 Paying Individual Income Tax|58
3|4.1.9 Case Studies and Examples|58
3|4.1.10 Tax Planning of Remuneration Package|59
2|4.2 Company Income Tax|60
3|4.2.1 Evolution|60
3|4.2.2 General Rules|62
3|4.2.3 Major Tax Incentives and Preferential Tax|71
3|4.2.4 Special Topic: Non-resident|74
2|4.3 Land and Property Related Taxes|84
3|4.3.1 Urban and Township Land Use Tax|84
3|4.3.2 Farmland Occupation Tax|85
3|4.3.3 Land Value-Added Tax/Land Appreciation Tax|85
3|4.3.4 Property Tax/Real Estate Tax|86
3|4.3.5 Deed Tax|87
1|5 Indirect Taxation|89
2|5.1 Value-Added Tax (Vat)|89
3|5.1.1 Taxpayers and Method for Calculating Vat|90
3|5.1.2 Deduction of Input VAT from Output VAT|92
3|5.1.3 Export VAT System|92
3|5.1.4 “Business-Tax-to-Vat” Reform of 2016|95
3|5.1.5 Beneficies of the 2016 Vat Reform|97
3|5.1.6 Vat Invoices|97
2|5.2 Consumption Tax|100
3|5.2.1 Consumption Tax Calculating Methods|102
3|5.2.2 Cosmetics, Ornaments, Fireworks and Firecrackers|105
3|5.2.3 Petroleum Oil, Motorcycles, Motor Cars, Yachts, Luxury Watches, Golfballs, Wooden Chopstick and Wood Floor Board|105
3|5.2.4 Sales Value and Additional Fees and Charges|107
3|5.2.5 Deduction of Consumption Tax|107
3|5.2.6 Assessment of the Consumption Tax|110
3|5.2.7 Time Limits for Returnings and Payments|110
2|5.3 Business Tax|111
2|5.4 Other Taxes|111
3|5.4.1 Custom Duties|111
3|5.4.2 Resource Tax|113
3|5.4.3 Vehicle and Vessel Tax|115
3|5.4.4 Extra Topic: Social Insurance|116
3|5.4.5 Stamp Duty|118
3|5.4.6 Motor Vehicle Acquisition Tax|120
1|6 Free Trade Zones|121
2|6.1 Investing in China Through Free Trade Zones|121
2|6.2 FTZs and Sectors|124
2|6.3 Latest Trends in FTZs|125
2|6.4 FTZ and Tax Policies|127
1|7 Main Legislations and Regulations|129
2|7.1 Law of the People’s Republic of China on Tax Administration|129
2|7.2 Law of the People’s Republic of China on Enterprise Income Tax|150
2|7.3 Income Tax Law of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises|162
2|7.4 Provisional Regulations on Enterprise Income Tax of the People’s Republic of China|169
2|7.5 Regulations on Some Policy Issues Concerning the Income Tax for Enterprises|173
2|7.6 Measures for Pre-tax Deductions from Income Tax for Enterprises|176
2|7.7 Provisional Regulations on Authorized Methods for Corporate Income Tax Collection|188
2|7.8 Regulations on the Personal Income Tax Assessment of Individual Businesses (Provisional)|195
2|7.9 The Administrative Measures of Special Tax Adjustments|203
2|7.10 Individual Income Tax of the People’s Republic of China|238
2|7.11 Provisions for Taxation of Individual Income Tax on Investors of Individually Owned Enterprises and Jointly Owned Enterprises|244
2|7.12 Regulations on the Specific Policy for the Farmland Occupation Tax|258
2|7.13 Provisional Regulations on Urban Land Use Tax of the People’s Republic of China|261
2|7.14 Provisional Regulations on Land Value Appreciation Tax of the People’s Republic of China|264
2|7.15 Provisional Regulations on House Property Tax of the People’s Republic of China|266
2|7.16 Provisional Regulations on Urban Real Estate Tax of the People’s Republic of China|268
2|7.17 Provisional Regulations on Value Added Tax of the People’s Republic of China|272
2|7.18 Provisional Regulations on Consumption Tax of the People’s Republic of China|278
2|7.19 Explanations of Business Tax Items (Provisional)|282
2|7.20 Provisional Regulations on Business Tax of the People’s Republic of China|292
2|7.21 Rules for the Implementation of the Provisional Regulations on Stamp Tax of the People’s Republic of China|296
1|Bibliography|304
1|Contents|6
1|1 Introduction to Taxation|10
2|1.1 Definition and Purpose|10
2|1.2 Basic Principles of Taxation|10
1|2 Legislative Framework|15
2|2.1 Brief History|15
2|2.2 Legislative Organs|16
3|2.2.1 State Council|19
3|2.2.2 Ministry of Finance|22
3|2.2.3 State Administration of Taxation|24
2|2.3 Local Bureaus|26
3|2.3.1 Tax Laws and Classification in China|26
1|3 Taxpayers|29
2|3.1 Resident Enterprises|29
3|3.1.1 Enterprises Organized Under Chinese Law|29
3|3.1.2 Enterprises Organized Under Foreign Laws|35
2|3.2 Non-resident Enterprises|37
3|3.2.1 Foreign Company Carrying on Trade or Business in China|37
3|3.2.2 Foreign Company Receiving Income from China that Is not Connected with Establishment in China|41
3|3.2.3 Representative Office of Foreign Enterprise|41
2|3.3 Individual Taxpayers|43
3|3.3.1 Individual Income Tax|43
1|4 Direct Taxation in China|44
2|4.1 Individual Income Tax|44
3|4.1.1 History|45
3|4.1.2 Residency and Domicile|46
3|4.1.3 Taxation of Types of Income|49
3|4.1.4 Eligible Deductions and Exemptions|50
3|4.1.5 Tax Rate and Calculation|51
3|4.1.6 Production and Business Income|51
3|4.1.7 Exemptions, Tax Credits, Reductions, and Other Deductions|57
3|4.1.8 Paying Individual Income Tax|58
3|4.1.9 Case Studies and Examples|58
3|4.1.10 Tax Planning of Remuneration Package|59
2|4.2 Company Income Tax|60
3|4.2.1 Evolution|60
3|4.2.2 General Rules|62
3|4.2.3 Major Tax Incentives and Preferential Tax|71
3|4.2.4 Special Topic: Non-resident|74
2|4.3 Land and Property Related Taxes|84
3|4.3.1 Urban and Township Land Use Tax|84
3|4.3.2 Farmland Occupation Tax|85
3|4.3.3 Land Value-Added Tax/Land Appreciation Tax|85
3|4.3.4 Property Tax/Real Estate Tax|86
3|4.3.5 Deed Tax|87
1|5 Indirect Taxation|89
2|5.1 Value-Added Tax (Vat)|89
3|5.1.1 Taxpayers and Method for Calculating Vat|90
3|5.1.2 Deduction of Input VAT from Output VAT|92
3|5.1.3 Export VAT System|92
3|5.1.4 “Business-Tax-to-Vat” Reform of 2016|95
3|5.1.5 Beneficies of the 2016 Vat Reform|97
3|5.1.6 Vat Invoices|97
2|5.2 Consumption Tax|100
3|5.2.1 Consumption Tax Calculating Methods|102
3|5.2.2 Cosmetics, Ornaments, Fireworks and Firecrackers|105
3|5.2.3 Petroleum Oil, Motorcycles, Motor Cars, Yachts, Luxury Watches, Golfballs, Wooden Chopstick and Wood Floor Board|105
3|5.2.4 Sales Value and Additional Fees and Charges|107
3|5.2.5 Deduction of Consumption Tax|107
3|5.2.6 Assessment of the Consumption Tax|110
3|5.2.7 Time Limits for Returnings and Payments|110
2|5.3 Business Tax|111
2|5.4 Other Taxes|111
3|5.4.1 Custom Duties|111
3|5.4.2 Resource Tax|113
3|5.4.3 Vehicle and Vessel Tax|115
3|5.4.4 Extra Topic: Social Insurance|116
3|5.4.5 Stamp Duty|118
3|5.4.6 Motor Vehicle Acquisition Tax|120
1|6 Free Trade Zones|121
2|6.1 Investing in China Through Free Trade Zones|121
2|6.2 FTZs and Sectors|124
2|6.3 Latest Trends in FTZs|125
2|6.4 FTZ and Tax Policies|127
1|7 Main Legislations and Regulations|129
2|7.1 Law of the People’s Republic of China on Tax Administration|129
2|7.2 Law of the People’s Republic of China on Enterprise Income Tax|150
2|7.3 Income Tax Law of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises|162
2|7.4 Provisional Regulations on Enterprise Income Tax of the People’s Republic of China|169
2|7.5 Regulations on Some Policy Issues Concerning the Income Tax for Enterprises|173
2|7.6 Measures for Pre-tax Deductions from Income Tax for Enterprises|176
2|7.7 Provisional Regulations on Authorized Methods for Corporate Income Tax Collection|188
2|7.8 Regulations on the Personal Income Tax Assessment of Individual Businesses (Provisional)|195
2|7.9 The Administrative Measures of Special Tax Adjustments|203
2|7.10 Individual Income Tax of the People’s Republic of China|238
2|7.11 Provisions for Taxation of Individual Income Tax on Investors of Individually Owned Enterprises and Jointly Owned Enterprises|244
2|7.12 Regulations on the Specific Policy for the Farmland Occupation Tax|258
2|7.13 Provisional Regulations on Urban Land Use Tax of the People’s Republic of China|261
2|7.14 Provisional Regulations on Land Value Appreciation Tax of the People’s Republic of China|264
2|7.15 Provisional Regulations on House Property Tax of the People’s Republic of China|266
2|7.16 Provisional Regulations on Urban Real Estate Tax of the People’s Republic of China|268
2|7.17 Provisional Regulations on Value Added Tax of the People’s Republic of China|272
2|7.18 Provisional Regulations on Consumption Tax of the People’s Republic of China|278
2|7.19 Explanations of Business Tax Items (Provisional)|282
2|7.20 Provisional Regulations on Business Tax of the People’s Republic of China|292
2|7.21 Rules for the Implementation of the Provisional Regulations on Stamp Tax of the People’s Republic of China|296
1|Bibliography|304