People's Republic of China Tax Guide
15% only applies to Chinese enterprises with “New and High Technology” status or to enterprises operating in the western region of China
Dividend distribution from a resident of People’s Republic of China enterprise to another PRC resident enterprise is exempt from Corporate Income Tax.
Dividend distribution from a non-resident entity to a PRC resident entity is subject to Corporate Income Tax (25%). However, foreign tax credits may be available.
Capital gains derived by a PRC resident enterprise are subject to Corporate Income Tax (25%). No exemption for PRC.
Enterprises may carry tax losses forward for 5 years. No carry-back is allowed.
Income Tax Treaties for the Avoidance of Double Taxation
Find the full list at http://www.ird.gov.hk/eng/tax/dta_inc.htm
Value Added Tax (VAT)
VAT is imposed on sales of goods and maintenance/repair services on movable goods.
13% reduced rate may be available for sales of certain goods
Exports attract a zero rate of VAT. A refund of input VAT incurred on materials purchased do- mestically for the export of goods is available and varies from 0% – 17%.
A full refund of input VAT is not available for certain products.
VAT returns are usually led on a calendar month basis.
Personal Taxation Individual Income Tax
Top Rate: The top rate for individuals’ employment income is 45% (for salary income of greater than RMB 80,000)
The tax rates depend on the source of income.