China Corporate Tax Planning and Tax Advisory Services
As the world’s second-largest economy, China offers multinational companies unlimited business opportunities, an abundant and efficient workforce, an increasingly sophisticated infrastructure, and a lucrative consumer market. However, the current tax environment in China is posing unprecedented challenges to multinational corporations. These include complicated tax rules, strict scrutiny by tax authorities, and an unpromising economic environment.
China’s tax system is complex, with numerous tax laws and significant differences in tax practices between regions. Therefore, it is of utmost importance to effectively manage the China tax burden, fulfill compliance obligations, and fully enjoy the legal rights of taxpayers. In addition to tax regulations, China government departments at all levels regularly issue regulations and policies. They often have a significant impact on cross-border tax planning. If multinational companies don’t know about the latest changes to regulations, they might take on unnecessary tax and business risks that could hurt their business in China in the long run.
Effective tax planning is one of the most important factors affecting the return on your investment in China. If your company wants to invest or do business in China, it should work with a professional tax service provider who can give you good tax advice and help you plan your taxes well.
Tax advise for day-to-day operations
- Aides in solving tax problems encountered in the course of daily business operations.
- Optimizing the existing tax treatment of the enterprise.
- Giving professional advice on relevant tax matters.
- Committed to the development of compliance enterprise tax treatment.
Daily tax planning.
Personal Income Tax Planning For Expatriates
- We provide customized personal income tax planning and reasonable tax planning for expatriates.
- Calculation of personal income tax; preparation and submission of relevant documents; and monthly and annual filing of personal income tax returns.
Tax filing
Foreign-invested enterprises, representative offices of foreign enterprises, and branches of foreign enterprises are required to file tax returns and pay taxes in China. Tax service providers will assist enterprises in preparing and processing the following tax declarations:
- Monthly VAT declaration;
- Monthly business tax returns;
- Monthly surtax declaration;
- Monthly Stamp Duty declaration;
- Quarterly corporate income tax returns;
- Annual corporate income tax settlement;
- Monthly and annual individual income tax returns (including local employees and foreign employees)
Withholding Tax
The income billed by a foreign company for services rendered to a company in China (including for its subsidiaries in China) is considered income earned in China. The China tax authorities will impose a 10% withholding tax on income derived from China, referred to as the “withholding tax”. The following income is subject to withholding tax:
- Dividends, bonuses;
- Interest (example: interest on a loan: interest on a shareholder’s loan paid by a China subsidiary to a foreign parent company);
- Rent;
- Royalties;
- Service fees;
- Income from transfer of property;
- Other income.
3E Accounting’s Tax and Advisory Services Department specializes in providing comprehensive tax advisory and filing services to local and international clients. Because we have a lot of experience and know-how, we help our clients understand the local and international tax laws that affect their business and make the most of tax incentives to legally and effectively lower their tax liabilities and increase their profits after taxes.
