How are foreign companies taxed in China?
Foreign companies in China must register with the relevant tax authorities within 30 days after they receive their business license. Subsequently, they will be subjected to various forms of taxation, including corporate income tax, business tax, stamp tax, housing tax, vehicle & vessel tax and value-added tax. The tax rates vary with the type of establishments formed, the location of the company as well as the industry sector of the business. The companies will also need to file annual audits before the end of every March. Their profits can only be distributed and repatriated to their home country after the annual audit and the settlement of their relevant income tax liabilities. More details on how Rep Offices and WOFEs are taxed in China can be found in our Information Guide – Taxation of Foreign Enterprises in China. JLJ offers consulting, planning and management services for companies who wish to optimize their taxes in compliance with China tax regulations. Contact us at info@jljg
