China accounting & tax

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Accounting & Tax

What main taxes need to pay for a company in China?

1) VAT (value added tax):

Tax payer type	Jan. 1, 2023 to Dec. 31, 2027	Notes
Small tax payer	1%, quarterly sales no more than RMB300,000, VAT is FREE	Free to choose when initializing tax registration. When annual sales is more than RMB 5 million, then next year shall convert to General tax payer.
General tax payer	13% (general sales) 9% (farm products, Real estate sale, Real estate leasing, transportation services, construction services, transfer land use rights, Postal services, Basic telecommunications services and etc., 6% (Sales of intangible assets value-added telecommunications services Financial services Modern services and consulting Domestic services (including catering and accommodation services and etc.,)	Free to choose when initializing tax registration. When small tax payer annual sales is more than RMB 5 million, then next year shall convert to General tax payer.

2) Enterprise income tax (EIT):

Enterprise type	Jan. 1, 2023 to Dec. 31, 2027	Notes
Small low-profit enterprises	5%	Annual profit no more than RMB 3 million; Number of employees no more than 300; Total assets no more than RMB 50 million.
Other enterprise	25%	-

3) Social insurance and housing fund for Chinese employee:

Shanghai (based on gross salary, but minimum RMB 7310, maximum RMB 36549 per month)

Social insurance	Employer need to pay	Employee need to pay
Pension	5%	5%
Medical insurance (including maternity insurance)	10%	2%
Unemployment Insurance	0.5%	0.5%
Injury Insurance	0.16% - 1.52%	-
Housing fund	5% - 7%	5% - 7%
Total	31.66% - 35.02%	15.5% - 17.5%

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