Tax laws and policies are developed jointly by the regulatory
bodies of the State Administration of Taxation (SAT) and the Ministry of Finance. The SAT
is the body charged with collecting tax and enforcing compliance and is assisted by the state and
local tax bureaus at the provincial level and below. Applicable tax laws and policies will vary
depending on the city and province in which a business is operating as there can be
additional local surcharges that may apply based on provincial tax regulations.
China’s taxation system includes a wide range of imposts on businesses and individuals
including income taxes (corporate income tax and individual income tax), turnover taxes
(value added tax, business tax and consumption tax), taxes on property (land appreciation tax and
real estate tax), as well as taxes such as stamp tax, customs duties, motor vehicle
acquisition tax, vehicle and vessel tax, and urban construction and maintenance tax. Not all
applicable taxes are covered here and the information that is provided should only be used as a
guide. China’s laws and regulations, which underpin the nation’s tax system, are currently in a
state of transition and discussion drafts looking at various aspects, including the Taxation
Collection Administration Law
(TCAL), and the VAT and Business Tax systems.
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