challenges of internal control if internal control

What kinds of representative office activities are free of tax?

Following activities conducted by Representative offices can be exempt from tax: a) Market research b) Information collection, and c) Business liaison, where no income is generated. Any commissions, bonus or fees charged on behalf of the head office will be taxed.

What is the nature of representative office?

A representative office of a foreign entity plays a liaison role for its head office and China market. From legal perspective, it does not have a legal person status where all the liabilities will be borne by its foreign parent. Representative offices are taxed at different manners depending on how they are classified.

What is the framework of audit in China?

What are exemption cases?

a)Advertising matter and trade samples of no commercial value; b)Goods gifted by international organizations or foreign governments; c)Fuels, stores and beverages loaded on a means of conveyance entering or leaving the country for use en route; d)Raw materials, subsidiary materials parts, accessories, components and packing materials imported to process, assemble or produce export-oriented products.

How customs duty is calculated?

Customs Duty payable = Quantity of imported/exported goods × Tax-inclusive price × Rate (or Amount of duty per unit)

What is the framework of audit in China?

What are the tariff rates?

There are two kinds of rates. One are import duty rates and the other are export duty rates. The import rates fall into two categories: general tariff rates and preferential tariff rates. The general tariff rates apply to goods imported from countries with which China has not concluded most-favoured-nation trade agreements, while the preferential tariff rates have. […]

What is Customs Duties?

Customs duty is a tax levied on goods imported into or exported out of China.

How VVT is computed?

Tax payable = Quantity (or net-tonnage) of taxable vehicle / vessel × Applicable tax amount per unit

What is the framework of audit in China?

What are tax bases and rates of VVT?

Level Tax base Tax amount per year 1   Passenger vehicle   RMB 60-320 2   Cargo vehicle   RMB 16-60  per ton 3   Motorcycle   RMB 20-80 4   Non-motored vehicle   RMB 1.2-24 5   Motorized vessel   RMB 1.2-5 per ton 6   Non-motorized vessel   RMB 0.6-1-4 per ton

When should I pay RT?

The time limits for payment of tax by taxpayers can be one day, three days, five days, ten days, fifteen days or one month subject to decision made by competent tax authority. If RT cannot be assessed by regular period, it may be assessed on a transaction-by-transaction basis. Taxpayers that adopt one month as the […]