It is said that the tax liability is higher and more complicated in mainland China comparing to other countries, how can company handle tax issue properly? Anything could be done to keep a lower tax liability?

Comparing speaking, the tax law in mainland China is heavier than most other countries or states. There are two obvious features applied to tax laws:

1. Turnover taxes are implied into sales of services or products in mainland, means that tax such as Value Added Tax, Business Tax and Consuming Tax etc. is required on their turnover;

2. Tax rates are thought higher than most others and easy to get confused among different rates. For a brief overview of tax structure of Mainland China please press FRAMEWORK OF TAX.

In the foundation of complying laws and regulations, it is possible certain ways we could go to save some taxes. It is a complicated topic, in summary, there is a cross area between higher and lower tax rates services or products, if arranged properly, the lower tax rate could be applied; the way descripting terms in a sales contract might affect tax liability as well. For more information, please refer to taxation or email us at Yudalee@wealthsharings.com

Taxes could be one of main costs of eroding company profitability. Our value could be brought in to reduce the risks of bearing higher tax costs in clients’ operation so that ensure higher margins. Prudent tax advices are involved in the pre-decision-making stage.

The definitions of laws and regulations belong to establisher, namely government. There are basic terms and extensions regarding a specific item that implemented in the fact. We keep our knowledge and understanding up to date. This is a typical point reflecting we are processing the ACCA codes: being diligent and behavior professionally.