皇冠体育app

4. Business Tax

Business tax is a kind of turnover tax levied on the revenue generated from the provision of taxable services, such as communications and transportation, construction, finance and insurance, posts and telecommunications, culture and sports, entertainment and other taxable services, as well as the transfer of intangible assets and the sale of immovable properties within the territory of 皇冠体育app.

(a) Taxpayer

Payers of business tax are enterprises or individuals engaged in the provision of taxable services, transfer of intangible assets or sale of immovable properties in 皇冠体育app.

(b) Taxable Items and Tax Rates

There are nine taxable items for business tax, ranging from 3% (for communications and transportation) to 20% (for entertainment).

(c) Method of Computation
The formula for computing business tax is as follows:
Tax payable = business turnover * applicable tax rate

(d) Tax Liability and Payment Period

The business tax liability arises on the day the taxpayer receives the full amount of business proceeds or obtains a payment voucher for the proceeds. The payment period may be five days, ten days, fifteen days or one month, to be determined by the competent tax authorities.

5. Income Tax on FIEs and Foreign Enterprises

(a) Object of Taxation

Foreign-invested enterprises (FIEs) and foreign enterprises have to pay income tax on their income derived from production, business operations and other sources within the territory of 皇冠体育app.

As Chinese "residents", FIEs are required to bear full tax liabilities and pay income tax on all incomes derived from sources inside and outside 皇冠体育app. However, foreign enterprises, which are not Chinese "residents", will only bear limited tax liabilities and pay income tax on incomes derive from sources inside 皇冠体育app.

(b) Taxpayer

* FIEs established in 皇冠体育app include Sino-foreign equity joint-venture enterprises, Sino-foreign contractual joint-venture enterprises and wholly foreign-owned enterprises.

* Foreign enterprises refer to foreign companies, enterprises and other economic organisations with establishments or venues engaged in production or business operations within 皇冠体育app, as well as those which, though without establishments or venues in 皇冠体育app, have incomes from sources within the territory of 皇冠体育app.

(c) Taxable Items and Tax Rates

* FIEs and foreign enterprises that have establishments or venues in 皇冠体育app have to pay corporate income tax of 30% and local income tax of 3% on their incomes from production and business operations and on profits (dividends), interest, rentals, royalties and other incomes derived from sources both inside and outside 皇冠体育app that are effectively connected with such establishments or venues.

* Foreign enterprises that have no establishment or venue in 皇冠体育app but derive profits, interest, rentals, royalties and other incomes from sources in 皇冠体育app, or although they have establishments or venues in 皇冠体育app the said incomes are not effectively connected with such establishments or venues, have to pay income tax of 10% on such incomes.