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Taxes in China What is tax？ 什么是税收？ 税收是指国家为了向社会提供公共产品、满足社会共同需要、按照法律规定参与社会产品的分 配、强制、无偿取得财政收入的一种规范形式。税收是一种非常重要的政策工具。 Tax refers to a standardized form in which the state participates in the distribution of social products, forces and obtains financial revenue free of charge in order to provide public products to the society, meet the common needs of the society and in accordance with the provisions of the law. Tax is a very important policy tool.

Major taxes for foreign companies in China 在华外资企业的主要税种 Taxes are China’s most important source of fiscal revenue that greatly affects China’s social and economic development. Under the current tax system in China, there are 14 types of taxes that are applicable to enterprises with foreign investment, foreign enterprises and/or foreigners, namely： 税收是中国最重要的财政收入来源，对中国的社会和经济发展影响巨大。在中国现行税制下， 共有 14 种税种适用于外商投资企业、外国企业和/或外国人。即：

Value Added Tax (VAT) 增值税 Consumption Tax (CT) 消费税 Business Tax (BT) 营业税 Income Tax on Enterprises with Foreign Investment and Foreign Enterprises (CIT) 外商投资企业所得税 Individual Income Tax (IIT) 个人所得税 Resource Tax 资源税 Land Appreciation Tax 土地增值税 Urban Real Estate Tax 城市房地产税 Vehicle and Vessel Usage License Plate Tax 车船用牌照税 Stamp Tax 印花税 Deed Tax 契税 Slaughter Tax 屠宰税 Agriculture Tax 农业税 Customs Duties 关税

In order to run the business in the most cost efficient way and to remain compliant in China, it is absolutely necessary for foreign companies and individuals to understand all the taxes in China before making an investment decision. Below we will provide you with a breakdown of the most important taxes foreign companies should take note of: 为了以最具成本效益的方式经营业务并在中国保持合规性，在做出投资决定之前， 外国公司和个人非常有必要了解中国的所有税收。下面，我们将为您提供外国公司 应注意的最重要税收事项。 Business tax 营业税 营业税适用于在中国境内提供服务（不 BT applies to the provision of services 包括加工服务、修理和更换服务）、转让 (excluding processing services and repair and 无形财产和销售房地产的情形。 replacement services), the transfer of 由于增值税改革，一些服务现在需要缴 intangible properties and the sale of real 纳增值税而非营业税。一般营业税税率 estate properties in China. 在 3%-20%之间，但根据行业的不同而有 Due to the VAT reform some services are 所不同，随着中国扩大增值税改革以涵 now subject to VAT and not business tax. 盖更多行业，营业税税率可能会发生变 General BT rates range from 3% - 20%, but 化。 they vary depending on the industry, and are subject to change as China expands its VAT reform to include more industries.

The annual China company accounts audit What do companies need to submit? WFOE and a JV Submissions 1. The annual audit report 2. The corporate income tax (CIT) reconciliation report 3. Annual reporting to the AIC 4. Annual foreign exchange reconciliation 5. Annual combinative reporting to MOFCOM, MOF, SAT and NBS RO Submissions 1. The annual audit report 2. Annual tax reconciliation report 3. Annual reporting to the AIC 中国公司年度财务审计 公司需要递交什么材料？ 外商在华独资企业与中外合资企业 递交的材料 1. 年度审计报告 2. 企业所得税对账报告 3. 向 AIC 提交年度报告 4. 年度外汇对账 5. 向商务部、财政部、国家税 务总局和国家统计局提交年度合 并报告 6. 注册办公室的递交材料 7. 年度审计报告 8. 年度税务对账报告 9. 向 AIC 提交年度报告

There are a number of business entities that foreigners can choose to set up in China that include: 外国人可以选择在中国设立很多种公司，包括： WFOE (Wholly Foreign Owned Enterprise) 外商独资企业 Joint venture (JV) 合资企业（JV） Representative office （RO） 代表处 The annual filing requirements of a WFOE and JV are similar in practice, but they are more complicated than that of a RO. It is important that foreign enterprises conduct an annual audit and settle tax liabilities as this is a prerequisite to being able to repatriate profits back to their home country. This also helps enterprises to improve their financial reports in accordance with Chinese accounting standards and gives auditors the chance to find and fix any issues a company may have. Below we will take a quick look at the filing requirements, the milestones of submission regarding annual compliance and what documents one needs to prepare for a WFOE and a JV, and that of a RO. 外商独资企业和合资企业的年度备案要求是相似的，但它们比代表处更复杂。外国企业每 年进行一次审计并结清税务负债非常重要，因为这是能够将利润汇回本国。这也有助于企 业根据中国会计准则改进其财务报告，并使审计师有机会发现和解决公司可能存在的任何 问题。下面，我们将快速地查看一下提交要求、提交年度合规性的里程碑，以及需要为外 商独资企业、合资企业和代表处准备哪些文件。

WFOE and a JV Submissions 外商独资企业和合资企业提交的文件 Obtaining annual compliance for these two business entities can be broken into 5 tasks, namely: 这两个公司的年度合规性可分为 5 项，即： 1. The annual audit report 1. 年度审计报告 There are a number of business entities that foreigners can choose to set up in China that include: 外国人可以选择在中国设立许多商业实体，包括： 1.a balance sheet 资产负债表 2.an income statement 收入表 3. a cash flow statement 现金流量表 *IMPORTANT •The audit must be conducted by an externally licensed accounting firm and signed by a registered CPA in China. •The requirements/documents needed for the annual audit may differ depending on the location of your company within China, so it is best to consult a local firm prior to preparing for it. •Preparing for the annual audit usually takes around 2 months. *注意事项 •审计必须由外部授权的会计师事务所进行，并 由中国注册会计师签字。 •年度审计所需的要求/文件可能因贵公司在中 国境内的位置而有所不同，因此最好在准备之 前咨询当地公司。 •年度审计准备通常需要 2 个月左右。

Required documents for the annual audit report: 公司编号 年度审计报告所需的文件： 公司章程 公司营业执照 Company code 税务认证 Article of association 税单 Company business license 验资报告 Tax authentication 上一年的审计报告 Tax certificate 会计与财务管理 Verification of capital report 公司内部控制程序 The audit report from the previous year 组织结构图 Accounting and financial management procedures of the company 租赁合同 Internal control procedures of the company Organizational chart 董事会会议记录 Lease 银行对账单 财务报表和补充说明 Minutes from board meetings 会计凭证 Bank statement 会计账簿 Financial statement and supplementary notes 账户资产负债表 Accounting vouchers 对账表 Accounting books 车辆所有权证书 Account balance sheet 房产证 Reconciliation sheet 固定资产表 Ownership of vehicle certificate 月度/季度纳税申报表和付款 Real estate certificate Fixed assets sheet Monthly/Quarterly tax returns and payments

The corporate income tax (CIT) Annual reporting to the AIC reconciliation report 向工商行政管理局提交年度报告 企业所得税（CIT）对账报告 All foreign incorporated The purpose of the submission of enterprises are required to this report is for the State submit an annual report for the Administration of Tax (SAT) to previous fiscal year to the determine whether or not all tax relevant Administration of liabilities have been met, and Industry and Commerce (AIC). subsequently whether companies need to pay additional taxes (if 所有外国注册企业都需要向相关 there are discrepancies) or if they 的工商行政管理局（AIC）提交上 are able to apply for tax 一财年的年度报告。 reimbursement. 提交本报告的目的是为了国家税务 总局（SAT）确定是否已满足所有纳 税义务，以及随后公司是否需要支 付附加税款（如果存在隐瞒行为）或 是否能够申请退税。

Annual reporting to the AIC 向工商行政管理局提交年度报告 All foreign incorporated enterprises are required to submit an annual report for the previous fiscal year to the relevant Administration of Industry and Commerce (AIC). 所有外国注册企业都需要向相关的工商行政管理局 （AIC）提交上一财年的年度报告。 Required documents for the annual report to the AIC: 向 AIC 提交年度报告所需的文件： The current status of the company Company details that include its mailing address, local postal code, telephone number, email address, website name and its URL Company details pertaining to its total assets, liabilities, warranties and guarantees provided for other business entities Company details pertaining to the owner’s total equity, revenue, income from the main business Company details pertaining to the gross profit, net profit and total tax Company details pertaining to the subscribed and paid-in amount of its shareholders 公司的现状 公司详细信息，包括其邮寄地址、当地邮政编码、电话号码、 电子邮件地址、网站名称及其 URL 有关其为其他公司提供的总资产、负债、担保和担保的公司 详情 与所有者权益总额、收入、主营业务收入有关的公司详情 与毛利润、净利润和总税费有关的公司详细信息 与股东认缴和实缴金额有关的公司详情 如果企业是有限责任公司或股份有限公司，则与股东出资时 间和方式有关的公司详情

Annual foreign exchange reconciliation 年度外汇清缴 Foreign companies are now required to comply with an Existing Registration Right that has replaced the need for companies to complete a Statement of Foreign Investors’ Equity, and submit themselves to the foreign exchange annual inspection since June 1, 2015. 外国公司现在需要遵守现有的注册权，该注册权已取代了公司填写外国投资者权益表的需要，并自 2015 年 6 月 1 日起接受外汇年检。 *IMPORTANT 重要信息 •Failure to comply will result in the Foreign Exchange Bureau taking control over the parties in the capital account information system, and banks will cease to conduct foreign exchange business for non compliant companies. 不遵守规定将导致外汇局接管资本账户信息系统中的各方，银行将停止为不遵守规定的公司开展外 汇业务。 Annual combinative reporting to MOFCOM, MOF, SAT and NBS 向商务部、财政部、国家税务总局和国家统计局提交年度合并报告 The annual combinative inspection that was jointly conducted by several government departments since 1998 was replaced by an annual combinative reporting system in 2014. 自 1998 年以来由多个政府部门联合开展的年度合并检查在 2014 年被年度合并报告制度所取代。 *IMPORTANT 重要信息 •The bureaus take on the role of supervisors, and maintain a capacity whereby they can only suggest foreign enterprises make modifications on the report. •All information can be submitted online and printed materials are no longer necessary, making the requirements much easier to navigate. •各局作为监督者，并只能建议外国企业修改报告。 •所有信息都可以在线提交，无需打印材料，从而更容易达成要求。