Value Added Tax (VAT)

We discuss what a fapiao is, how it is different from an invoice, how to use fapiaos and where their importance comes from.

China has lowered employer contributions to the country's Pension Fund. These significant reductions to employer social security contributions may be one the country's most underestimated tax reforms in recent times.

China has recently implemented changes and reforms to the Individual Income Tax (IIT), the Value Added Tax (VAT) and Corporate Income Tax (CIT) in China.
This webinar, addresses the main changes of these reforms and will elaborate on their impact for EU businesses operating in China.

China's VAT reform continued with new Value Added Tax policies, such as lowering of China's VAT rates in 2019, increased scope of VAT credits and the introduction of a VAT refund pilot scheme from April 1st of 2019.

On March 5th, 2019, China announced reductions to the Value Added Tax (VAT). The VAT rates of 16% and 10% will be decreased to VAT rates of 13% and 9%. In the announcement, no specific date on which the new VAT reductions will come into effect was provided, but it could be expected to still come into effect in 2019.

Most companies in China must meet several monthly, quarterly and annual tax deadlines and compliance requirements. This article will discuss Corporate Income Tax (CIT), Value Added Tax (VAT) and Surtaxes, Individual Income Tax (IIT), the Housing Fund, and Social Security.

The rules and regulations for foreign companies to do business in China can be considered as strict and for some businesses even as restrictive, However, it certainly remains possible for foreign companies to do business in China without owning a local entity. Foreign companies can sell their services in China, sell and import their goods into China and have their products produced in China, all without owning a local entity.