Tax, Accounting and Audit in China 2015 - Preview Tax, Accounting & Audit in China 2015 - Preview | Page 7

Contents
1. China’s Tax System............................................8
1.1 A Brief History ................................................................................................................................................. 9
1.2 Legislative Organs ...................................................................................................................................... 10
1.3 Tax Administration ..................................................................................................................................... 11
1.4 Tax Revenue and Expenditure ............................................................................................................ 13

2. China’s Business Taxes.....................................16
2.1 Corporate Income Tax ............................................................................................................................. 17
2.2 Withholding CIT .......................................................................................................................................... 25
2.2 Value-added Tax .......................................................................................................................................... 27
2.3 Business Tax .................................................................................................................................................... 40
2.4 Consumption Tax ........................................................................................................................................ 42
2.5 Customs Duties ........................................................................................................................................... 45
2.7 Other Taxes ..................................................................................................................................................... 47

3. Individual Income Tax.......................................52
3.1 Tax Rates and Calculation Methods ................................................................................................ 53
3.2 Liability Determination for Foreign Individuals ....................................................................... 57
3.3 Payment and Declaration ..................................................................................................................... 60

4. Accounting, Audit and Tax Compliance...........61
4.1 Chinese Accounting Standards ......................................................................................................... 62
4.2 Annual Audit and Tax Compliance .................................................................................................. 63
4.3 Profit Repatriation ...................................................................................................................................... 67

5. International Taxation.......................................75
5.1 Anti-avoidance ............................................................................................................................................. 76
5.2 Transfer Pricing ............................................................................................................................................. 81
5.3 Double Taxation Avoidance Agreements ................................................................................... 82

6. Appendices.......................................................89
6.1 Appendix A: CIT Reductions and Exemptions ......................................................................... 90
6.2 Appendix B: VAT Exempt Services ................................................................................................... 91

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