Category Taxation in China

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...

Read More

China Outlines New Pollution Taxes

June 11, 2015 Taxation in China

BEIJING – China will soon tax noise pollution, air pollution, solid waste, and water pollution.

The State Council of China has recently released a draft of a new law detailing several new tax measures aimed at helping reduce the pollution levels in the country.

The new law will impose a strict set of levies on the emission of solid waste, air pollutants, polluted water, and noise pollution.

Under the newly issued regulations, water pollution will be levied at a rate of RMB 1.4 per 4 kilograms of waste, and solid waste will be charged at a rate of between RMB 5 and RMB 30 per tonne, while air pollution will be taxed at a rate of RMB 1.2 per unit, with the definition of a unit varying based on the nature of the gas.

Noise pollution will also be taxed at a rate of RMB 350 to 11 200, althoug...

Read More

China Drops Export Tax on Aluminum and Rare Earth Metals

April 24, 2015 Taxation in China

BEIJING – The international market for metals could undergo a significant adjustment, as China drops a 15 percent export tax on a number of metals.

On April 25th the government of China announced that the export tax on aluminum, rare earth metals, and selected other metals, such as tungsten and molybdenum.

The export taxes, which are set at 15 percent, were originally enacted to protect the supply of the metals in China, while simultaneously helping foster the mining industry and any other industry using the metals as raw materials.

The removal of the tax is part of a wider set of measures to streamline the taxation system in China and to reduce the red tape faced by businesses.

Soon after the announcement the benchmark for aluminum prices on the London Metal Exchange fell by 1...

Read More

New Environmental Tax in China

January 29, 2015 Taxation in China

batteries in ChinaBEIJING – Pollutant-heavy batteries and paints in China are set to become more expensive with the imposition of a new tax on such products.

In a recent statement the Ministry of Finance of China announced that from February 1st a new tax will be enacted on the production and import of environmentally-unfriendly batteries and paints.

The tax will be levied at a rate on 10 percent on all batteries, except for environmentally-friendly variants, such as lithium, nickel-hydrogen, mercury-free, and batteries intended for use solely with solar panels and other renewable energy generators.

The tax will also be levied on the production and import of lead storage batteries, however, the measure will not come into effect until January 1st 2016.

Paints and coatings will also fall under the 10 percen...

Read More

China Hikes Fuel Tax

January 13, 2015 Taxation in China

BEIJING – China is responding to the global drop in oil prices by hiking the taxes on all oil products, including gasoline, diesel and jet fuel.

On January 12th the State Administration of Taxation of China issued a statement saying that on January 13th the consumption taxes levied on the sale of oil products will be raised.

Previously the consumption tax on gasoline, naphtha, solvent oil and lubricating oil was set at CNY 1.4 per litre, however, the rate will now be raised to CNY 1.52 per litre.

Also, the tax applied to the sale of diesel, jet fuel and fuel oil will now be set at CNY 1.2 per litre, a level which is RMB 0.1 higher than the previous rate of CNY 1.1 per litre.

The cuts to the rate of the consumption tax are part of the government’s reaction to the continual fall of the p...

Read More