OVERVIEW OF CHINA'S CURRENT TAX SYSTEM
Fixed Assets Investment Orientation Regulation Tax
(1) Taxpayers
This tax is imposed on enterprises, units, individual household
businesses and other individuals who invest into fixed assets
within the territory of the People's Republic of China (excluding
enterprises with foreign investment, foreign enterprises and
foreigners).
(2) Taxable items and tax rates
Table of Taxable Items and Tax Rates
| Taxable Items |
Tax Rates |
| A .Infrastructure 1. State urgent projects 2. Projects
encouraged by the State but restricted by the condition
of transportation and energy 3. Office buildings, hotels
and guest houses 4. Residential buildings (including commercial
residential buildings) 5. Other |
0% 5% 30% 0%,5% 15% |
| B. Renewal and transformation projects 1. State urgent
projects (same as infrastructure) 2.Other renewal and
transformation projects |
0% 10% |
(For some residential building investment projects, the rate
is 5%.)
(3) Computation of tax payable
This tax is based on the total investment actually put into
fixed assets. For renewal and transformation projects, the tax
is imposed on the investment of the completed part of the construction
project. The formula for calculating the tax payable is:
Tax payable - Amount of investment completed or amount of investment
in construction project × Applicable rate |
