Our collection of resources based on what we have learned on the ground
Resources
Q&A
What are the consequences of a foreigner leaving China before they can use their...
- May 2014
- Free Access
If the foreigner leaves China prior to reaching the prescribed statutory age for pension withdrawal, their social insurance personal account will be retained, and the contribution years will be calculated on a cumulative basis if they come back to Ch...
Q&A
As of November 2013, which countries have bilateral or multilateral social secur...
- May 2014
- Free Access
Currently, only Germany and South Korea have entered into social insurance agreements with China. The Interim Measures for Participation in the Social Insurance System by Foreigners Working within the Territory of China provides that expatriate emplo...
infographic
Input and Output Value-added tax in China
- May 2014
- Free Access
The flow of Input and Output Value-added tax in China.
infographic
Chinese Value-Added Tax (VAT) Reform Rates Chart
- May 2014
- Free Access
Different VAT rates for different industries in China.
Q&A
How are value-added tax and business tax defined in China?
- May 2014
- Members Access
Value-added tax is levied on the sales and import of tangible goods, and the provision of processing, repair and replacement services. Depending on the status of the taxpayer, being either small-scale or general, the tax rate ranges from 3 percent &n...
Q&A
Are value-added tax (VAT) and business tax mutually deductible in China?
- May 2014
- Members Access
Value-added tax (VAT) and business tax (BT) are not mutually deductible in China. This means that businesses selling and importing goods are not able to claim deduction for the purchase of services, while service providers are not able to claim deduc...
Q&A
What are the value-added tax (VAT) rates in China as of December 2013?
- May 2014
- Members Access
Transportation services are subject to 11 percent VAT and modern services are subject to 6 percent VAT, except for tangible property lease services which are subject to 17 percent. Exported services are zero-rated or exempt from VAT. Zero-rated VAT a...
Q&A
What are the different statuses for value-added tax (VAT) payers in China?
- May 2014
- Members Access
VAT taxpayer statuses are divided into two categories: general taxpayers and small-scale taxpayers. General taxpayers are taxpayers with an annual sales volume of taxable services equivalent to or exceeding RMB5 million, while small-scale taxpayers a...
Q&A
What if an entity provides services that are subject to different value-added ta...
- May 2014
- Members Access
If a taxpayer provides taxable services that are subject to different rates, the sales volume for each tax rate should be accounted for separately, or else the highest tax rate applies. Similarly, VAT taxpayers who concurrently provide services subje...
Q&A
How is value-added tax (VAT) calculated for foreign entities or individuals in C...
- May 2014
- Members Access
If an overseas entity or individual provides taxable services in China and does not have an operating entity in China, the tax withholding party should calculate the amount of tax to be withheld using the following formula: Amount of tax to be wit...
Q&A
What is the difference between zero-rated value-added tax (VAT) and VAT exempt s...
- May 2014
- Members Access
The difference between zero-rated and exempted VAT is that, under zero-rated VAT the input VAT attributable to the export of services can be credited from VAT payable and/or refunded. Under the VAT exemption system, the input VAT attributable to expo...
Q&A
What happens if a service is eligible for both value-added tax (VAT) zero-rating...
- May 2014
- Members Access
If a service is eligible for both VAT zero-rating and VAT exemption, VAT zero-rating takes precedence over VAT exemption. Providers of zero-rated VAT services may opt to pay VAT or apply for VAT exemption instead by filing a relevant declaration. How...
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