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Taxation Services

Corporate Income Tax Reporting

Corporate income tax is calculated against the net income after deducting reasonable business costs and losses in a financial year. It is calculated annually but often paid quarterly with adjustments either refunded or accrued to the next year. The final calculation is based on the year-end audit. The income tax rate for both foreign and domestic companies in China is set at 25 per cent. On top of the 25 per cent, there are industry based tax incentives.

However there are a few exceptions that are as follows:

  • Small-scale enterprises may be given a rate of between 10-20% depending on if certain requirements are met,
  • High-technology businesses are given a 15% tax rate,
  • Enterprises in certain regions or who are engaged in encouraged business activities could potentially receive a tax rate of 15%.
  • Tax exemptions can also apply to a number of encouraged business areas.

Here at LehmanBrown, we have dedicated teams who are extremely knowledgeable about the Chinese taxation system and who will help your company report their taxes. They will seek the proper breaks and incentives that your company can qualify for. LehmanBrown’s extensive experience with accounts means we can provide reliable bookkeeping for all tax matters in an efficient and effective way.

To make an enquiry or to learn more about the Corporate Income Tax Reporting Services in China that LehmanBrown offer, please contact us at enquiries@lehmanbrown.com.