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The People's Republic Of China: Tax Facts And Figures

Foreword
This booklet has been prepared to
provide the reader with an overview of
taxes levied in the People’s Republic of
China. It is not intended to cover exhaustively
the subjects it addresses but rather to answer
some of the important, broad questions that
may arise for the reader. When specific issues
arise in practice, it will often be necessary to
refer to the laws, regulations and
interpretations of the PRC. Since the laws and
regulations are still evolving and are not
always uniformly interpreted, it is advisable to
obtain appropriate professional advice.
If you would like more information on any of
our services described on pages 24 to 25,
please contact one of our specialists listed at
the back of this booklet.
The commentary in this booklet does not cover
taxes levied in Hong Kong, which became a
Special Administrative Region of the PRC on
1 July 1997. Hong Kong continues to retain
its own tax system and the taxes applicable in
mainland China do not apply in Hong Kong.
Contents
Page
Tax administration 1
Tax filing and payment 1
– Enterprise income tax 1
– Individual income tax 1
Foreign Investment Enterprises and 2
Foreign Enterprises
– Enterprise income tax 2
– Local income tax 2
– Concessionary tax rates 3
Special Economic Zones 3
Economic and Technological Development Zones 3
Old Urban Districts of SEZs and ETDZs and 4
Coastal Open Economic Zones
Hi-Tech Industry Development Zones 4
Bonded Zones 4
Shanghai Pudong New Area 4
National Tourism Areas 5
Other areas 5
Production 5
Oil, natural gas, rare metals and precious metals 5
Agriculture, forestry and animal husbandry 5
Technologically advanced and 5
export-oriented enterprises
Harbour and wharf construction 6
Financial institutions 6
Representative offices 6
– Tax refund on reinvestment 6
– Investment restrictions on foreign investors 7
– Special deductions and other matters 8
Depreciation 8
Intangibles 9
Pre-operating expenses 9
Management...