Your Individual Income Tax: All you ever wanted to know about filing your taxes in China and never dared to ask.


Are you working and living in China? Have you ever thought about your tax duties? If you earn income, you are most likely subjected to individual income tax in China. Navigating the taxation system in the P.R.C. can be quite difficult, especially if you are not a tax expert. Plus, as each person’s tax situation is unique, seeking professional advice is always recommended. You do not want to miss a deadline, or to pay a wrong sum.

China’s Environmental Protection Tax Law in effect from January 1st, 2018

China’s Environmental Protection Tax Law to reduce pollution levels

This year, China is going to effectively start its battle against environmental pollution. Announced by the State Council, the Implementation Rules for the Environmental Protection Tax Law (EPT Law) and the Law itself took effect on January 1st, 2018. Businesses in China, and prospected market entrants, need to fully understand the Law’s implications and implementation to legally operate in the market without facing high impacts on their finances. In addition, the Law sets new opportunities for foreign companies in environmental protection fields. 

Income tax brackets in China for employees, self-employees and corporate

As Partner of S.J. Grand Financial & Tax Advisory, in China since the early 90’s, I can recommend gathering all the possible insights on corporate and individual taxation in China. Comply with rules, avoid illegal practices for the both the mother company and branch’s sake.

Here’s a summary of the main taxation levied on companies and employees in China.

Corporate taxation in China includes:

-        Corporate Income Tax (CIT)

WFOE set-up in the Shanghai Pilot Free Trade Zone

Wholly Foreign-Owned Enterprise (WFOE) is, by far, the favorite entity for foreign investors looking to set up a company in China. Representative Offices may offer cheap and easy way to feel Chinese trends, Joint-Ventures may give you a privileged access to the market, but WFOE are the only way for a foreign investor to have full control on its operations in China. And where else than in Shanghai would you set up a WFOE? Since the launch of the Shanghai Pilot Free Trade Zone (SHPFTZ) last September, new opportunities for foreign investors are arising in the city.

Representative Office Incorporation in China

Representative Offices (RO) are the cheapest, fastest and easiest way to incorporate in China, compared to WFOE and JV. However, such advantages come with several weak points you should be aware of before choosing to set up an RO. Let’s have a closer look at their characteristics:

S.J. Grand joins PrimeGlobal

As one of the leading business consulting firms in China, S.J.Grand is proud to announce that it has been accredited for becoming a member of PrimeGlobal, an association of independent accounting firms that ranks amongst the 5 largest professional associations in the world. PrimeGlobals’s more than 320 member companies from 87 countries share the same faith in excellence and dedication towards the satisfaction of their client’s needs.

How to avoid the Cash Trap?

Strategies to repatriating profit from China in 2014


  • From 1 January 2012 qualified businesses in Shanghai will be required to charge VAT following approval by the local tax bureau;
  • Input VAT is creditable both for qualified pilot participants and their customers;
  • Generally, the program follows existing VAT mechanisms;
  • Two new VAT rates will be introduced, 6% and 11%, adding to the existing rates of 13% and 17%;
  • Treatment of exports is yet to be determined but likely 0% or tax exempt;
  • The first VAT return is due on 15 February 2012;

China to introduce tax on rare earth resources

--New resource tax to come into effect April 1st--

The State Administration of Taxation and Ministry of Finance issued a joint statement this week to announce China will begin taxation on rare earth minerals beginning next month.
The new tax will be levied at 60 RMB per ton for light rare earth minerals, and 30 RMB per ton for heavy rare earth minerals.

State Council tightens fapiao rules

--Reforms clarify use of fapiao seal--

China’s State Council has issued new regulations on the management of fapiao.

Previously, companies could issue a fapiao by chopping the receipt with either their financial seal (财务专用章) or their fapiao seal (发票专用章). The new regulations stipulate that from Feb 1st only a fapiao seal (发票专用章) will be recognized as creating a valid fapiao.

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