Many international companies having operations in China are bound to be
hit by the two new surtaxes that will affect their tax filings starting
in January 2011.Foreign enterprises, foreign invested enterprises, and
foreign individuals in China must now pay the Urban Construction and
Maintenance Tax as well as an Education Surcharge. Earlier, these taxes
were only imposed on domestic enterprises and Chinese individuals with
foreign enterprises, but now all tax payers of China's indirect taxes
must pay.
A brief about the surtax
This surtax is calculated as a percentage of the actual amount of the Value Added Tax (VAT), the consumption tax and the business tax paid by the taxpayers. While the Education Surcharge is 3 percent across the board, the rate for the Urban Construction and Maintenance Tax varies by location. In city areas like Shanghai and Beijing, the rate is 7 percent, while in county and township areas the rate is 5 percent, and in other, less populated areas the rate is as low as 1 percent. Read More
A brief about the surtax
This surtax is calculated as a percentage of the actual amount of the Value Added Tax (VAT), the consumption tax and the business tax paid by the taxpayers. While the Education Surcharge is 3 percent across the board, the rate for the Urban Construction and Maintenance Tax varies by location. In city areas like Shanghai and Beijing, the rate is 7 percent, while in county and township areas the rate is 5 percent, and in other, less populated areas the rate is as low as 1 percent. Read More
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