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| The Latest Tax Regulation | |||||||
| Content | General Taxpayer | ||||||
| Qualification | Special VAT Invoice ( fapiao ) | ||||||
| Industries | Service, Trade | ||||||
| Customs Duty | Check HScode please ( The Customs Web ) | ||||||
| Instance ( RMB ) |
Company's operation records / current month ( oversea transactions, refer to daily foreign exchange rate ). Purchase cost: 100,000 Customs duty: 15,000 Import VAT: 115,000*16%=18,400 Sales price: 150,000 Installation fee: 20,000 After sales: 10,000 Running expense: 40,000 ( salary, rent, etc. ) |
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| VAT | Income |
trading / sales activities: monthly turnover ( income )*16% ( 2019 down to 13% ) engineering / installation: monthly turnover ( income )*10% ( 2019 down to 9% ) services / tech. supporting: monthly turnover ( income )*6% ( deduct purchasing VAT ) |
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| Instance Analysis | |||||||
| Trading | Trading | VAT=(150,000/1.16*16%)-(115,000*16%)=2,289.66 | |||||
| After-sales | After-sales | VAT=10,000/1.06*6%=566.04 | |||||
| Installation | Installation | VAT=20,000/1.1*10%=1,818.18 | |||||
| Total VAT | Total VAT | 4,673.88 | |||||
| Additional Tax | Additional Tax | 4,673.88*7% or *11% depending on different situation of preferencial policies. | |||||
| Corporate Income Tax | Profits | income(150,000+20,000+10,000)-purchase100,000-Customs duty15,000-running40,000-Icome VAT=profit | |||||
| Rate | < 1 million, 5% 1-3 million, 10% >=3 million, 25% | ||||||
| Expense/cost invoice ( fapiao can offset profit, fapiao title must be under corporate name and tax id ) | |||||||
| 1. traffic fapiao ( traveling, catering, hotel, tickets ) etc. | |||||||
| 2. purchasing / transport / fapiao from suppliers. | |||||||
| 3. running cost ( warehouse, rent, adverising, conference, exhibition, marketing, office equipment, communication fee ) etc. | |||||||
| 4. management cost ( welfare, salaries, social insurance, house funding, other benefits ) etc. | |||||||
Posted by: FDIFIRM.com
Author: Mark.Sun
Email: mark.sun@fdifirm.com
Department: Legal Support
Mark Sun provides pre investment consulting of foreign enterprises, and helps foreign brands registering companies, CPA, business registration, Chinese business license application, government annual inspection, visa residents, bank account and related corporate services.
