Many people went to China to startup business, not just for buying goods, but also sell their service to Chinese people, such as business consulting service, trainning programs, health consultation, etc.
For this kind of company, the main tax is VAT and Enterprise Income Tax. and there also is tax incentives for some companies. You can find the below form for the tax details:
| Company Tax | |||
| Micro Enterprise | Small Taxpayer | General VAT Taxpayer | |
| Revenue in RMB | 0-30000 per month | > 30000 per month | Annual Revenue> 5M |
| VAT rate | 0 | 3% | 6% |
| Enterprise Income Tax rate | 10% | 25% | 25% |
| If the shareholders have dividents, they need to pay 20% dividents tax | |||
| Dividents tax rate | 20% | 20% | 20% |
| ???/span>The tax incentive for micro enterprise will last to the end of Year 2017 | |||
| VAT = Revenue* VAT rate | |||
| Enterprise Income Tax = Net profit * the rate | |||
| Net profit = Revenue – Cost | |||
| Revenue: The money be sent to you company account by customers or the money sent to company account by owner, marked Revenue |
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| Cost: Employee’s salary Social insurance Shareholders or employee’s Travel expense Office rent Other cost |
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