China

At a glance

Corporate Income Tax Rate 25%
Tax rate applied on capital gains 25%
Tax rate applied on branch profits 25%
   
Other taxes (e.g. local or state tax) yes
   
Withholding taxes (standard rates)  
on dividends 10%
on branch profit remittance N/A
on interest 10%
on royalties 10%
   
Loss carry back period N/A
Loss carry forward period 5 years

Please note that these tax rates are only applicable in standard situations.

Introduction

With nearly 4,000 years of continuous history, China is one of the world's oldest civilizations. Prior to the 19th century, it possessed an advanced economy. However, in the 19th and 20th century, imperialism and civil war damaged this economy. In 1949, the Chinese Civil War ended after a major combat and two states calling themselves "China" emerged: The People's Republic of China (PRC), established in 1949, commonly known as China, has control over mainland China and the largely self-governing territories of Hong Kong (since 1997) and Macau (since 1999). In the 1970s, reforms led by Deng Xiaoping, known as the Four Modernizations, improved agriculture, industry, technology and defense, raising living standards and making the PRC one of the great powers. The Republic of China (ROC), established in 1912 in mainland China, now commonly known as Taiwan, has control over the islands of Taiwan, Penghu, Kinmen, Matsu, the Pratas island group, and a few other outlying islands. In the 1950s, change to economic policies in Taiwan transformed the island into a technology-oriented industrialized developed economy after a period of high growth rates and rapid industrialization. Historically, the cultural sphere of China has extended across East Asia as a whole, with Chinese religion, customs, and writing systems being adapted to varying degrees by neighbours such as Japan, Korea and Vietnam. Through its history, China was the source of many major inventions. It has also one of the world's oldest written language systems. (Source: Wikipedia)

Publications

CTA Members in China

Joseph Fu Joseph Fu
Telephone: +852 3719 6288 E-Mail: joseph.fu@corptax.org
Sue Cuthbertson Sue Cuthbertson
Telephone: +852 3719 6111 E-Mail: sue.cuthbertson@corptax.org

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