Brief on tax preferential policies for the first half year of 2023

Preface For the purpose of relieving the financial problem and stabilizing the business development, the tax authority has issued a series of tax relief and fee deduction policies during the first half year of 2023. These policies show the characteristics of continuity of tax preferential policy, targeting the stress of small scale enterprises and system […]

Corporate income tax treatment for Hybrid Investment

Preface Equity investment and loans are two different forms of investment investors may contribute to the invested enterprises with respect of repayment and calculation of return. Accordingly, tax treatment for both investors and investees for these two kinds of investment is different. For equity investment, the return is treated as dividends which can be exempted […]

Brief Review on Accounting Treatment and Tax Treatment for Share-based

Preface Nowadays,share incentive payment is commonly applied by listed and unlisted enterprises to motivate and retain employees. Regarding the tax treatment for this kind of payment, including individual income tax (“IIT”) for employees and corporate income tax (“CIT”) for the employers, we will have a brief review on tax regulation stipulation in this article. What […]

Brief Introduction of Tax Credit Administration System

As response to the plan of the state council to build social credit system during 2014-2020, for tax credit system building, tax authority issued a provisional tax credit administration measures in 2014 and a series of documents during the following years to guide and define the implementation. In this article, we would like to briefly […]

What responsibility a legal representative shall take?

For all enterprise registered with the government authority in China, a legal representative shall be designated. The name of legal representative shall be registered with the government authority and printed on business license. But what responsibility the legal representative shall take? This is a question often asked by legal representative of foreign-invested enterprises. In this […]

The summary of the corporate income tax (“CIT”) policies on the small scaled and minimal profit enterprises

Firstly, we may distinguish the two concepts of the small scaled and minimal profit enterprises “SSMPE” and the small/miniature enterprises “SME”. SME is comparative with large and middle sized enterprises. According to the categorization standard of middle and small sized enterprises, issued by Ministry of Industry and Information Technology of the P.R.C, National Statistic Bureau, […]

Taxes Cut in China: How Much on VAT, IIT and CIT?

China’s government is continuously decreasing taxes and burdens on companies in China, aiming to infuse energy to the market, promote employment and boost up economy as a whole. Among these decreases, business leaders and accountants should understand how your value-added tax (VAT), individual income tax (IIT), and corporate income tax (CIT) have been changing. Value-added […]

IIT Calculation Tool is Updated

Before the full implementation of the new tax law, the transitional policy of the new tax law will be implemented first from 1 Oct. 2018 to 31 Dec.2018 in order to allow taxpayers to enjoy tax cuts and dividends as soon as possible. Welcome to use our updated Individual Income Tax calculation tool to experience […]

China Social Insurances Collection

Starting from January 1, 2019, the basic pension insurance, basic medical insurance, unemployment insurance, injury insurance, maternity insurance will be collected by tax authorities. On the other hand, the government bodies are preparing to decrease the insurance rates to decrease the burden for companies. Lee & Lee Associates Insights: When tax authorities take over the […]