(Source: https://pltfrm.com.cn)
Tax registration is a crucial step for a newly established foreign business in China, as it ensures compliance with the Chinese tax system. Here are the general tax registration requirements:
- Obtain a Business License:
- Before registering for taxes, the business must first obtain a business license from the relevant local authority.
- Register with the Local Tax Bureau:
- The company needs to register with the local tax bureau. This process typically involves submitting the business license and other company documents.
- The registration should be done within 30 days of receiving the business license.
- Acquire a Tax Identification Number (TIN):
- Upon registering, the company will be issued a Tax Identification Number, which is required for all tax filings and dealings with tax authorities.
- Value-Added Tax (VAT) Registration:
- If the business is involved in sales or services in China, it needs to register for VAT.
- VAT registration may require additional documentation and is dependent on the nature of the business.
- Enterprise Income Tax (EIT) Registration:
- All companies must register for Enterprise Income Tax. The standard corporate income tax rate is typically around 25%, but this can vary depending on the industry and specific incentives applicable.
- Other Taxes and Local Levies:
- Depending on the nature of the business, it may be necessary to register for other taxes, such as business tax, property tax, or land use tax.
- Local levies and surcharges may also apply, which vary by region.
- Social Insurance and Housing Fund Registration:
- Businesses must register with the local social security bureau for employee social insurance (which includes pension, medical, work-related injury, unemployment, and maternity insurance) and the housing fund.
- Special Tax Registrations:
- For certain types of businesses, such as those involved in import and export, additional tax registrations may be required.
- Obtain Invoices (Fapiao):
- In China, companies must use government-issued invoices called “Fapiao” for all sales. Obtaining these requires a separate application process with the tax authorities.
- Appoint a Tax Representative:
- It may be necessary to appoint a tax representative, especially if the legal representative of the business is not a resident in China.
- Regular Compliance:
- After registration, companies must comply with regular tax filing requirements, which can include monthly, quarterly, and annual tax declarations.
- Consult with Tax Professionals:
- Given the complexity of China’s tax system, it is highly recommended to consult with local accounting and tax professionals. They can provide guidance specific to the business’s industry and region, ensuring compliance and taking advantage of any available tax incentives or benefits.
It’s important to note that tax laws and regulations in China can change, and there may be regional variations. Staying updated on the latest tax laws and regulatory changes, and maintaining good communication with local tax authorities, is essential for successful business operation in China.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
