China tax returnis one of Tannet's company follow-up services. The 2008 Enterprise
Income Tax (EIT) Law applies to both domestic and foreign-invested
enterprises, generally at the same rate, with special rates
applying in certain cases. In addition to the enterprise income
tax, China levies a number of turnover taxes, such as value added
tax (VAT), business tax (BT), consumption tax and customs duties.
There also is a resource tax, land appreciation tax (LAT), social
security contributions, stamp duty, etc. China does not levy a
branch profits tax, excess profits tax or alternative minimum tax.
China has transfer pricing, thin capitalization and controlled
foreign company rules, as well as a general anti-avoidance rule.
China Tax Return
Tax return is required in most systems. Some systems require that
taxpayers self assess tax on the tax return. Other systems provide
that the government must make an assessment for tax to be due. Some
systems require certification of tax returns in some manner by
accountants licensed to practice in the jurisdiction, often the
company's auditors. Tax return due dates vary by jurisdiction,
fiscal or tax year, and type of entity. In self-assessment systems,
payment of taxes is generally due no later than the normal due
date, though advance tax payments may be required.
Notes On China Tax Return
China's tax year is the same as the calendar year and returns must
be submitted by 31 March of the following year, to the local tax
authority of an employee's place of employment. Fines for not
filing a tax return on time can be high.
Tax returns forms shall be filed completely and well documented
within the statutory deadline. Not only will you avoid penalties
for not applying the correct tax treatment on a wide variety of
expenses and avoid unnecessary scrutiny but you’ll also ensure that
you make the most of all available tax incentives.