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Shanghai Taxes

Shanghai Taxes/tax in shanghai

Update Date:2023-2-2 16:06:36     Source:www.3737580.com     Views:1385

Shanghai Taxation Service
Shanghai Hotline: 021- 68877368     Tel (Wechat): +86 18101649652
Email: anitayao@citilinkia.com

 

Shanghai is China’s economic center and financial center, also called as “The biggest city in China”. It’s a prosperous metropolis, which also has all kinds of company taxes. And in order to run the business in a most cost efficient way, it’s necessary for investors and businessman to get a better understanding of the so-called Shanghai taxes. In addition, different type of investment activities will trigger different types of taxes.  We provide below a brief introduction of the Shanghai taxation system.


Shanghai Taxes – Tax on income
Corporate income tax ("CIT") - standard tax rate is 25%, but the tax rate could be reduced to 15% for qualified enterprises which are engaged in industries encouraged by the China government (e.g. New/high Tech Enterprises and certain integrated circuits production enterprises).  Tax holiday is also offered to enterprises engaged in encouraged industries.  Other CIT incentives are also available for tax resident enterprises in China.

 

Individual income tax ("IIT") - progressive rates range from 3% to 45%.


Shanghai Taxes – Tax on Transactions (Turnover Tax)
Value-added tax - applies to the sale of goods, except real estate properties, and the provision of labour services in relation to the processing of goods and repair and replacement services within China.  The standard tax rate is 17% with certain necessities taxed at 13%.

 

Consumption tax - applies to 14 categories of consumable goods, including tobacco, alcoholic drinks, cosmetics, jewellery, fireworks, gasoline, diesel oil, tires, motorcycles, automobiles, golf equipment, yacht, luxury watch, disposable chopsticks and wooden floorboard.  The tax is computed based on sales price and/or sales volume.


Business tax - applies to the provision of services (excluding processing services and repair and replacement services), the transfer of intangible properties and the sale of real estate properties in China.  Tax rates range from 3% to 20%.

Shanghai Taxes – Tax on Specific Objective 
Land appreciation tax - a tax levied on the gains realized from real property transactions at progressive rates ranging from 30% to 60%.  The gain is calculated based on the "land value appreciation amount", which is the excess of the consideration received from the transfer or sale over the "total deductible amount".


Shanghai Taxes – Tax on Resource
Resources tax - a tax levied on natural resources, generally on a tonnage or volume basis at rates specified by the Ministry of Finance.  Taxable national resources include crude oil, natural gas, coal, other raw non-metallic minerals, raw ferrous metals, nonferrous metallic minerals and salt (both solid and liquid).

 

Shanghai Taxes – Tax on Property
Real estate tax - a tax imposed on the owners, users or custodians of houses and buildings at the rate at either 1.2% of the original value with certain deduction or 12% of the rental value.


Shanghai Taxes – Tax on Behaviour
Vehicle and vessel tax - a tax levied at a fixed amount annually on the owners of vehicles and vessels used in the China.

 

Motor vehicle acquisition tax - 10% of the taxable consideration will be levied on any purchase and importation of car, motorcycles, trams, trailer, electric buses, cart and certain types of trucks.


Stamp tax - a tax levied on enterprises or individuals who execute or receive "specified documentation" in China and the tax rates vary between 0.005% to 0.1%.

 

Shanghai Taxes – Tax Levied by the Customs
Customs duties - duties are imposed on goods imported into China and are generally assessed on the CIF (cost, insurance and freight) value.  The rate of duty depends on the nature and country of origin of the imported goods.


Shanghai Taxes – Tax Levied by Finance Department
Deed tax - a tax levied on the transferees or assignees on the purchase, gift or exchange of ownership of land use rights or real properties, with the tax rates generally range from 3% to 5%.

Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net, or calling Hong Kong hotline at 852-27826888 or Shanghai hotline at 86-021-68877368, 021-58822399, or emailing to hkcfm-shanghai@163.com.

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