Incorp China

Corporate income tax (CIT) is a kind of income tax levied on the income from production and operation and other income gained by companies within the territory of China.

According to the new Income Tax Law of the People’s Republic of China, published in 2008, the general corporate income tax rate is 25%. The preferential corporate income tax policy of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen will be extended for another five years, and the corporate income tax will be levied at a reduced rate of 15%. Only qualified enterprises within the area can enjoy the preferential corporate income tax policy.

Corporate income tax (CIT) is a kind of income tax levied on the income from production and operation and other income gained by companies within the territory of China.

According to the new Income Tax Law of the People’s Republic of China, published in 2008, the general corporate income tax rate is 25%. The preferential corporate income tax policy of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen will be extended for another five years, and the corporate income tax will be levied at a reduced rate of 15%. Only qualified enterprises within the area can enjoy the preferential corporate income tax policy.

Compared to invoice in other countries, China’s invoice (发票 or fapiao in Chinese) is different as it fulfills a different role in the Chinese invoice system. For foreign companies that want to register and start a business in China, they have to get familiar with fapiao to engage in business activities in China.

What is a Fapiao(发票)?

In recent times, due to the coronavirus epidemic, it has become more valuable for businesses to open in China. They have waived fees and given credits to small businesses to stimulate the economy. While they have a wide variety of credits, they do prefer certain businesses, including those like manufacturing business or medical businesses. This is not for the short term, as the benefits could last all the way through the end of 2025. In total, all of the benefits and waived fees total up to around 85 billion dollars.

These benefits were made by Li Keqiang this year (in 2021), during the yearly meetings of the NPC and CPPC national Committee. Li Kequiang is the Premier of the State Council of the PRC and a key architect of the country’s current economic reforms. This isn’t the first time incentives have been set in place for small businesses to come to China. Due to the Coronavirus epidemic, a new volley of such efforts have been made.

Starting a business in China is an incredibly fascinating venture, with a bulging and aging population and greater demand for a better quality of life, there are new markets emerging in China across all sectors.

A WFOE is a Wholly Foreign Owned Enterprise. This is a limited liability company which is owned entirely by a foreign company or individual. There are many advantages of owning a Chinese WOFE, including: