Category Taxation in China

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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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...

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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...

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