A Few Important Facts about China’s New Corporate Income Tax
By Vincent Cheung from www.pathtochina.com
1. The Tax Rate for both Chinese-owned and Foreign-owned companies are unified to 25%
2. Pudong and Five Special Economic Areas are entitled to five years’ transitional period, with the tax rate rising from 15% to 25% within 5 years( 18% 20% 22% 24% 25%).
3. The encouraged high-tech companies can enjoy a preferential 15% tax rate. For those new high-tech companies in special economic areas and Pudong, the “two exemption, three half†policy will be applied.
4. Small enterprises with thin profit can enjoy a preferential 20% tax rate.
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December 13th, 2009 at 8:38 am
We provide company registration services in Hyderabad, India.
The tax rates for domestic and foreign companies in China is same, quite surprising.
August 27th, 2010 at 12:36 am
in the statement,
“Pudong and Five Special Economic Areas are entitled to five years’ transitional period, with the tax rate rising from 15% to 25% within 5 years( 18% 20% 22% 24% 25%).”
I’m just wondering if none of those companies have asked, what is the very reason why their tax is rising? is there any problem encountered with this kind of tax transitions? also, I noticed that it is written as 18%-25% which one is true? the 15%-25% or the 18%-25%?