Tax registration

Tax Registration

1. A foreign-funded enterprise, its branches, and permanent representative office shall register with the local tax authorities, within 30 days after it obtains a business license. For tax registration, a foreign-funded enterprise shall submit duplicate copies of the certificate of approval, document of approval, business license, national unified code certificate, contract and articles of association, bank account card, and legal person ID card or passport. Fill in two duplicate copies of the tax registration form type one (obtained from the taxation department) to apply for taxation registration in that department. The tax authorities will issue to the enterprise a certificate of tax registration, after they have verified the documents.

2. In case a foreign-funded enterprise and its branches, or a foreign enterprise and its permanent organ, change tax registration during production and operation, within 30 days of the industrial and commercial administration organ going through change formalities, or before applying for tax cancellation of the industrial and commercial administration organ, they shall go to the tax authorities for making such changes or cancellation in tax registration, and present the necessary documents.

Income Tax

An individual who has a residence in China and an individual who has no residence in China but has resided in China for one year or more must pay individual income taxes on his or her incomes obtained both inside and outside China. An individual who has no residence in China and has not resided in China and an individual who has no residence in China but has resided in China for less than one year should pay individual income taxes only on income obtained within China.

The following 11 types of incomes obtained in China are liable to individual income taxes:

1. income from wages and salaries;

2. income from production and business operation of business entities;

3. income from contracting operations and leases of businesses;

4. income from remunerations for provision of services;

5. income form author's remunerations;

6. income from royalties;

7. income from interests, dividends and bonuses;

8. income from lease of assets;

9. income from transfer of assets;

10. incidental incomes; and

11. other taxable incomes specified by the financial departments of the State Council.

Individual Income Tax Rates for Wages & Salaries

Table of Individual Income Tax Rates (Applicable to Wages & Salaries)

Grade Monthly taxable income* Tax Rates Quick Deduction

Grade Monthly taxable income	Tax Rates	Quick Deduction
Over 0 But not over 1,500	3%	0
Over 1,500 But not over 4,500	10%	105
Over 4,500 But not over 9,000	20%	555
Over 9,000 But not over 35,000	25%	1005
Over 35,000 But not over 55,000	30%	2755
Over 55,000 But not over 80,000	35%	5505
Over 80,000	45%	13505

* The monthly amount of taxable income refers to the amount of money when the fees for life insurance, unemployment insurance, work-related injury insurance and housing fund are deducted from the original salary minus 3,000 RMB for tax exemption.

Note:

1. A foreigner's monthly taxable income refers to the balance of his or her monthly income after deducting RMB 4,800 in expenses according to Article 6 of the Individual Income Tax Law and other applicable tax regulations.

2. Tax Payable = Monthly Taxable Income X Applicable Tax Rate - C Allowable Deduction

Individual Income Tax Rates for Other Categories

Incomes from provision of services, author's remunerations, royalties, interests, dividends, bonuses, lease of assets, and transfer of assets, incidental incomes and other incomes, are liable to a 20% tax. Exceptionally high one-off income from provision of services is liable to higher taxes; specifically:

Grade Income before Tax	Tax Rate （%）	Allowable Deduction
Below RMB 20,000	20	0
The portion in excess of RMB 20,000 to RMB 50,000	30	2000
The portion in excess of RMB 50,000	40	7000

Note:

1. Income before tax refers to the amount of income after deducting related expenses according to the Individual Income Tax Law.

2. A 30% concession is provided for income tax on author's remunerations.

3. For the income from each payment for provision of services, author's remunerations, royalties, or lease of assets, a deduction of RMB 800 for expenses is allowed if the income is less than RMB 4,000 and a 20% deduction for expenses is allowed if the income exceeds RMB 4,000.