New Guide Aims To Steer Foreign Investors Through Chinese Tax Maze

by Mary Swire, Tax-News.com, Hong Kong

06 May 2005

International research and data firm Research and Markets has published a new guide to help foreign investors navigate the maze of China's disparate and fragmented taxation system.

The guide, entitled 'Practical Guide on Taxation in China 2004' provides the foreign investor a comprehensive view of the tax system in China including forthcoming changes in its policies.

The Chinese tax structure is somewhat complex, as in many countries, but unique in other ways. Foreign invested enterprises are given tax incentives, if their enterprise is located in certain parts of the country and in designated industrial zones. In addition to the company taxes, there are a number of indirect taxes, charges, fees and levies imposed on the foreign invested enterprises.

The purpose of this report is to inform the foreign investor about the Chinese tax structure, so that the investor is able to plan the costs more accurately of doing business in China and equally important, to become aware of what taxes, levies, fees and charges need to be paid, and not to be paid.

The topics covered in the guide include: an overview on Chinese taxation; company taxation; withholding taxes; indirect taxes; tax deductions and depreciation rates; forthcoming tax legislation; personal income tax; miscellaneous fees, levies, and charges; illegal charges and fees; the 'do's and don't's'; and penalties.

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