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| Tax Planning in China | |||||||
Tax planning in China can be a challenging process due to its varied tax laws. The services provided by Healy Consultants ensure that China business engagements are completed in the most efficient manner. Following is information on the services provided by Healy Consultants including some of the differing tax legislations and regulations that need to be taken into account by individuals interested in investing in China:
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| 1. | Healy Consultants is able to open corporate bank accounts in the jurisdiction of choice to support company formation in China. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.
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| 2. | China is a relatively high tax jurisdiction, which saw some tax reform initiatives implemented at the start of 2008. A Chinese foreign and domestic company is required to pay a flat corporate tax rate of 25% on exceeding Rs1 million (approx. US$25,000).
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| 3. | Personal income tax for people resident in China is levied at a maximum of 45% on global income. Examples of personal income liable for tax include salary, bonuses, commissions and dividends.
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| 4. | Dividends paid by a WOFE or a FICE to foreign shareholders is exempt from withholding tax. However, dividends paid to international and local companies from Chinese-owned companies are subject to withholding tax of 10%. | ||||||
| 5. | Examples of other taxes levied in China include: i) Resource tax ii) Land appreciation tax iii) Consumption tax iv) Urban and Township land use tax v) City maintenance and construction tax vi) Urban real estate tax
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| 6. | When tax planning in China, investors should note that Chinese companies access a wide network of double taxation treaties China has signed with other countries. | ||||||
| 7. | China has signed double taxation treaties with more than 60 countries. These include Australia, Japan, Singapore, the UK and the USA. | ||||||
| 8. | The Chinese tax year runs from January to December. | ||||||
| 9. | Keeping abreast of international tax legislation is at the heart of successful tax planning in China. Healy Consultants' tax experts keep clients informed of regulatory changes in China before they can have any negative impact, and is therefore one of our most valuable China Tax Planning Services. | ||||||
| 10. | The correct corporate structure is essential to ensure international business is conducted tax-efficiently and legitimately when doing business and tax planning in China. Healy Consultants' China Tax Planning Services are tailored to meet the precise needs of each client. | ||||||
| 11. | Accounting and Taxation support is a key business startup service in China. It includes i) corporate structuring ii) withholding tax minimisation iii) tax returns and financial statements iv) payroll and investments. | ||||||
| Contact Us | |||||||
For more information on investing in China or starting a company in China, email email@healyconsultants.com or call us in Singapore at +(65) 6735 0120.
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