Shenzhen WFOE Tax System

Shenzhen Company Tax Service
Hotline: 86-755-82143348, Email: amyhuang@citilinkia.com

Foreign enterprises with their head offices in Shenzhen are taxed on their worldwide income. Tax credit is allowed for income taxes paid to other countries on certain incomes. Other foreign enterprises doing business in Shanghai and non-resident enterprises are taxed on income derived from Shenzhen source only. There are two systems of tax authorities in Shenzhen, namely, National Tax Bureau and the Local Tax Bureau. In general, the National Tax Bureau is responsible for assessing and collecting taxes for enterprises and corporations, while the Local Tax Bureau is responsible for individual income taxes and property taxes.

The new Enterprise Income Tax Law, effective from 1 January 2008, stipulates that both local and foreign companies are to be taxed at 25%. All currently eligible Foreign Investment Enterprises (FIEs), which have commenced the 2+3 tax holidays (2-years tax free incentive plus 3-years 50% exemption from taxation), will continue to enjoy the remaining unutilized tax holidays until expiry, but not later than 31 December 2013. However, the new law will not affect certain industry-specific preferential tax policies. We, Manivest, provide a comprehensive advisory in Shenzhen tax to those who are planning to invest in Shenzhen.

Major Taxes on WOFE
WOFE doing business in Shenzhen are liable to the following types of taxes:
1 Income Tax
2 Transaction Tax : Value added tax, Consumption tax, Business tax
3 Other taxes: Vehicle and vessel licence tax, Stamp tax, Property tax, Deed tax

In addition, custom duties are levied on imports and exports and individuals working in Shenzhen are liable to individual income tax.

Taxable Income – Income tax
Basis for computation of taxable income
There is some distinction between profits for accounting purposes and tax purposes. Shenzhen is revising its accounting standards to adhere with the international accounting practice. In brief, Shenzhen accounting standards are modeled on International 

Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling Shenzhen hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com.