Category Taxation in China

Tax Collections Jump 9.8% in China

April 21, 2016 Taxation in China

BEIJING – Tax collections in China are on the rise, with several industries showing significant growth in activity and profits.

On April 20th the State Administration of Taxation of China issued a new statement saying that over the first quarter of 2016 tax collections reached a level of RMB 2.979 trillion (approx. USD 461 billion).

The tax collections over the first three months of 2016 were approximately 9.8 percent higher than the tax collections over the same three months over the course of 2015.

Approximately 56.5 percent of all the tax revenues were collected from businesses in the tertiary industry.

The revenues collected over the first three months from the tertiary industry grew by 12 percent compared to the same period last year.

Significant revenues growth was also seen in the...

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Tax Breaks Boost Car Sales in China

January 13, 2016 Taxation in China

BEIJING – Tax breaks are leading to an increase in car sales in China, and the positive effect is expected to last through to at least the end of this year.

The implementation of a tax break on automobile sales has led to growth in the industry in 2015, although the rise was not as significant as expected.

It was previously expected that by the China Automobile Association that the automobile industry in the country would reach a level of 3 percent, and in reality the level actually reached 4.7 percent.

The higher-than-expected growth have been attributed to the government’s tax break on the sale of small-engine cars.

Currently, anyone purchasing a car in China will see the standard 10 percent sales tax hiked, if the car has an engine not exceeding 1.6 litres.

The tax break is schedule...

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Tax Cuts Boost Car Sales in China

November 12, 2015 Taxation in China

BEIJING – Tax cuts on small capacity cars in China have yielded positive results, prompting a resurgence of sales in the flagging car industry.

New tax cuts have spurred the sale of automobiles in China, according to new information released on November 11th by the China Association of Automobile Manufacturers.

Over the month of October approximately 1.94 million passenger cars were sold in China, a level which is 13 percent higher than that seen over the course of the same month last year.

The increase has been attributed to the government’s decision to halve the 10 percent sales tax on any passenger vehicle with an engine capacity not exceeding 1.6 litres.

Such small vehicles are widely popular in China, and are estimated to make up as much as 70 percent of new sales.

While sales figu...

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China Cuts Taxes for Small Cars

September 30, 2015 Taxation in China

BEIJING – China is looking to improve the environment while boosting sales new automobiles by introducing a temporary tax breaks on small-capacity vehicles.

On September 29th the State Council of China announced that the 10 percent tax on the purchase of new vehicles will be halved on the purchase of cars with engine capacities lower than 1.6 litres.

The tax break, which is set to take effect on September 30th and last until the end of next year, is intended to reduce the consumption of energy and fuels in China, while at the same time boosting sales of automobiles.

The market for the purchase of new automobiles in China has seen a slowdown, in line with a general decrease in economic activity in the country, and also in line with the government’s crackdown on corruption.

Alongside th...

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China Extends Small-Business Tax Breaks

August 20, 2015 Taxation in China

BEIJING – In an effort to boost the national economy China is extending tax breaks for micro businesses for another two years.

On August 19th the Cabinet of China announced that current tax measures aimed at assisting small businesses will be extended, and, in addition, some further tax breaks will be introduced.

The Cabinet has previously announced that annual taxable incomes less than RMB 200 000 will see their tax rate halved, however, with the recent announcement the threshold has been raised to RMB 300 000.

The raised threshold will take effect on October this year, and last until the end of 2017.

In addition the currently available exemption from paying income tax available for businesses earning between RMB 20 000 and RMB 30 000 per month will be extended until the end of 2017, alt...

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