Tax Consultation in China
Our tax accountants, auditors, lawyers and corporate consultants support international companies and businessmen in all issues concerning taxes and tax law in China.
Chinese tax law may seem impenetrable at first glance, but tax laws and bureaucracy can not prevent your from succeeding in China if you have experienced service providers and consultants at your side.
Our clients in “Tax Accountancy in China” are primarily:
- Subsidiaries, branches, business premises and representative offices of international companies in China.
- International private individuals with a high income, which have to be taxed completely or partially in China.
- Abroad living Chinese citizens with a high income, which have to be taxed completely or partially in China.
We want to manage your tax situation in the way that it is 100% legal, transparent and tax efficient. That means that you will not have to pay more taxes than necessary. We will find the best solution for you in order to guarantee the highest level of tax efficiency and a smooth communication with the Chinese tax authorities.
A short introduction into the tax system, taxes and tax rates in China
The Chinese tax system is based on a series of national laws and interim regulations. In China, the taxation principles, procedures, types and rates of taxes are standardized for the People’s Republic of China as a whole. Besides that, China is involved in over 100 double taxation treaties, including the USA, Japan, Germany, France, UK, Denmark, Singapore, Canada, Australia, Russia, India, Brazil and more.
The Chinese tax system is also defined as a tax division system because the state and regional tax administrations coexist in every administrative area and supervise different kinds of taxes. The VAT is supervised by the state tax administration while the individual tax is supervised by regional tax administration.
Here are the most important tax types in China with the respective rates:
- Corporate income tax: the standard rate is 25%; whereas the reduced rate of 20% is applicable for small low-profit enterprises, 15% is applicable for high and new technology enterprises and 10% for non-resident enterprises. The choosing of options has an influence on the tax result. Other perks depend on the location. China has a limited loss carryforward but no loss carryback.
- Value added tax (VAT): The VAT rate in China depends on the category of goods or services. For example, the standard rate for trading is 16%, while a rate of 10% for certain goods e.g. products of agriculture and 6% for services is established. Exports from China are free of VAT. The reduced VAT rate of 3% is applicable for small scale enterprises with limits on VAT deductions.
- Personal income tax: progressive tax rate varies between 3%~45% for wages and salaries. It should be noted that in China, the incomes of different species are subject to different tax rates. For example, the income tax rates of a shareholder differ from those for wages.
- Dividend tax (withholding tax): According to the double taxation agreement there is a 10% tax rate for dividends, interest and royalties.
Do not be scared of Chinese taxes or deterred from your business in China. Instead, find and choose the right business partner for these matters. You will see that China is also a very interesting business location from a tax point of view.
Our service “Tax Consultation in China” can profit the client in the following fields:
- Tax consultancy in combination with the company set-up;
- Tax advice in combination with Due Diligence;
- Tax Accountancy during Merger & Acquisitions;
- Elaboration of the company’s tax reporting policy;
- Optimizing tax calculations;
- VAT refund and
- VAT planning in cross-border businesses.
Our clients of Tax Consultancy in China often ask us for the following services as well:
- Company Set-Up in China
- Accounting Outsourcing in China
- Payroll Accounting in China
- Financial Reporting in China
- Internal Audit in China
10 reasons to work with Artax Rufil Consulting
- Quality: Our tax consultants and all other employees maintain a client, service and quality oriented approach.
- Loyalty: Our loyalty is always to our clients.
- Transparency: We ensure that our clients always maintain an overview of their Chinese business.
- German Work Ethic: The owners and directors of our company are German. In our work, we place great emphasis on German values.
- Highly qualified staff: In our office work professional Chiense tax consultant, accountants, auditors, lawyers and corporate consultants. Our working languages are English, German, Chinese and Russian.
- Experience: We have been supporting our clients in China since 2004.
- Security, Responsibility, Reliability: When our clients conclude an accounting contract with us, we take the responsibility and the reliability for their books.
- What does Quality in China cost: If the service is outsourced to Artax Rufil Consulting, you will save the costs of recruiting, wage and quality control.
- Long term Approach and Continuity: We believe in long term relationships with our employees, clients and suppliers.
- Network: We are part of a competent network of international partner companies in China and we would be delighted to provide you these contacts.
In our office in Shanghai work highly qualified accountants, consultants for tax and legal, auditors, finance experts (IFRS, US-GAAP, HGB, Chinese GAAP), experts and programmers for automation, accounting software and IT solutions as well as international management consultants. Our tax consultant and certified advisor for international tax law regularly visits our office in Shanghai and consults our clients regarding international tax issues with a focus on China.
Our working languages are English, Russian, Chinese and German.
Important information about Taxes in China (free downloads)
Who are we?
We are a German-international, medium-sized and owner-managed tax and strategy consultancy with locations in Shanghai, Moscow and Waldshut. With currently around 30 employees – most of them financial experts, management consultants, accountants, tax consultants and lawyers – we support German, Austrian, Swiss and international companies in China, Russia, Germany and Switzerland. You can also find out more about our company here: About Us
Successful business in China means action.
Here is our “call to action”
Get in contact with us by sending us an email or calling us. Besides that we would be happy to organize a video conference for you or welcome you in our office in the German Center of Shanghai. This is the best way to get to know each other and discuss all upcoming questions. We are looking forward to meeting you!