Our previous guidance of China WFOE registration, has listed a taxation form for the WFOEs which from different industries and business activities. Now, SMEsChina lists a new topic about the Corporate tax in China WFOEs including VAT (income), and profit tax (corporate income tax), preferential tax rates, and deduction for foreign owned enterprises.
Today, our chief CPA and executive finance manager, Mr Zheng will explain the detail taxes and computational formulas for Chinese taxation implemented since the reforming of current taxation, Mr Zheng works at SMEsChina financial support center, he has helped over 3,000 companies to establish compliance financial regulations and provide relevant tax policies training. Here, he will introduce 2 common types of taxpayer (small scale taxpayer and general taxpayer) and share their difference and tax regulations.
OK, Let’s get started.
What Expense/Cost Invoice Can Offset Profits
Expense/cost invoice ( fapiao can offset profit, fapiao title must be under corporate name and tax id ):
1. Traffic fapiao ( traveling, catering, hotel, tickets ), etc.
2. Purchasing / transport / fapiao from suppliers.
3. Running cost ( warehouse, rent, advertising, conference, exhibition, marketing, office equipment, communication fee ), etc.
4. Management cost ( welfare, salaries, social insurance, house funding, other benefits ), etc.
