Kaizen - Tax System of the People's Republic of China

A Wholly Foreign Owned Enterprise (WFOE) is a Limited Liability Company established in China by foreign investor(s). A WFOE is very much like a LLC in the USA that it requires one member only.
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The registration procedures of a Wholly Foreign Owned Enterprise (WFOE) could be divided into 3 phases: aproval phase, registration phase and post-establishment phase.
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A Wholly Foreign Owned Enterprise (WFOE) could be terminated by way of liquidation or deregistration by its investor(s) or when the conditions of termination in its Articles of Association occurs.
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China Taxation

Under the current tax system in China, there are 25 types of taxes which could be divided into 8 categories. The major ones are Business Tax, Value Added Tax and Enterprise Income Tax. More

Representative Offices are also liable for Business Tax and Enterprise Income Tax. However, a RO could be exempted if its parent company is in the manufacturing business.
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Any individual who has domicile in China or who has no domicile in China but has resided in China for one year or more shall pay Individual Income Tax on his world-wide income.
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CHINA BUSINESS
CHINA TAXATION SYSTEM

Tax System of the People's Republic of China

Overview of China's Current Tax System
1.	Type of Taxes	2.	Tax Legislation
3.	Foreign Investment Taxation
Briefing of Major Taxes under China's Current Tax System
1.	Value Added Tax	2.	Consumption Tax
3.	Business Tax	4.	Enterprise Income Tax
5.	Income Tax on Enterprises with Foreign Investment and Foreign Enterprises	6.	Individual Income Tax
7.	Resource Tax	8.	Urban and Township Land Use Tax
9.	City Maintenance and Construction Tax	10.	Farm Land Occupation Tax
11.	Fixed Assets Investment Orientation Regulation Tax	12.	Land Appreciation Tax
13.	House Property Tax	14.	Urban Real Estate Tax
15.	Vehicle and Vessel Usage Tax	16.	Vehicle and Vessel Usage License Plate Tax
17.	Stamp Tax	18.	Deed Tax
19.	Agriculture Tax+	20.	Customs Duties

Information of General Interests on Enterprise Taxes
1.	State Administration of Taxation
2.	Tax Organizations at and below Provincial Level
3.	Division of Administration Power of Tax Collection
4.	Revenue Allocation between the Central Government and the Local Governments
	Appendix 1: China's Current Tax System
	Appendix 2: China's Revenue Statistics for Some Years
	Appendix 3: Revenue Breakdown by Type of Taxes in 1997
	Appendix 4: Organizational Chart of SAT Headquarters
	Appendix 5: Organizational Chart of China's Tax Administration

Provisions of Preferential Policies Concerning Foreign Investments

	Income Tax Preferential Policies for Foreign Invested enterprises
	Value Added Tax (VAT) Preferential Policies for Foreign Invested enterprises




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