Notes for foreigners doing business under China tax system

Foreigners operating in China must comply with Chinese tax laws and regulations. This article will introduce some key points that foreigners should pay attention to when doing business under the Chinese tax system, including tax registration, tax obligations, preferential tax policies, and tax statements.

01

Registration

注册登记

Foreigners are required to complete registration procedures before carrying out business activities in China, including obtaining the unified social credit code, tax registration certificate and other relevant documents.

02

Tax classification

税种分类

Depending on the operation and nature of the business, foreigners in China may be subject to different types of taxes such as value-added tax, corporate income tax, and individual income tax.

03

Tax liability

纳税义务 

Foreigners in China are required to pay their due taxes in full and on time. Need to understand and comply with tax returns and tax timing requirements, such as monthly, quarterly or annual tax returns.

04

Preferential policies

优惠政策

China has offered a series of preferential tax policies to attract foreign investors. When conducting business in China, foreigners should have a detailed understanding of the applicable preferential policies in order to enjoy corresponding deductions and tax refunds.

05

Foreign transactions &

cross-border business

涉外交易和跨境业务

When foreigners engage in foreign transactions or cross-border business in China, they need to comply with relevant regulations, such as rational use of tax treaties and avoidance of double taxation.

06

Tax statement

税务报表

When foreigners operate enterprises, they need to fill in various tax statements timely and accurately in accordance with the provisions of the Chinese tax law, such as value-added tax invoices, enterprise income tax returns, etc.

As a foreigner doing business in China, it is essential to understand and comply with the Chinese tax system. By properly enforcing tax obligations and making full use of preferential tax policies, foreigners can conduct business in China and achieve sustainable development. But keep in mind that tax regulations are constantly changing and it is advisable to consult a professional tax adviser for the most up-to-date and reliable information and advice.

Reference Materials 

1. Law of the People's Republic of China on Tax Collection and Administration

2. Measures of the People's Republic of China for the Administration of Tax Registration

3. Value-added Tax Law of the People's Republic of China

4. Enterprise Income Tax Law of the People's Republic of China

5. Individual Income Tax Law of the People's Republic of China

6. Official website of the State Administration of Taxation

If you need any more information, feel free to contact SOLUTIONS. We will be glad to assist you.

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