![]() ![]() ![]() Imported products taxable under China’s consumption tax include those that are harmful to one’s health like tobacco or alcohol, luxury goods like jewelry and cosmetics, and high-end products, such as passenger cars and motorcycles.įor imported goods, the consumption tax rate varies depending on the type of product being brought into the country.Ĭalculating consumption tax can be done by using either the ad valorem method, quantity-based method, or the compound tax method. Value-added tax for imported goodsįrom April 1, 2019, China’s import VAT on imported goods has been lowered to either 9 percent or 13 percent, down from the previous 10 percent or 16 percent, according to the Announcement of the State Taxation Administration (STA) on Deepening the Reform of VAT ( STA Announcement No.39). Governing this intricate system is a central list of general principles for foreign companies to abide by. Below, we explain the three types of taxes applicable to companies importing products from or exporting products to China – Value-added tax (VAT), consumption tax (CT), and customs duties, and outline the most significant issues relating to these taxes and duties that foreign companies should take note of. These changes could affect companies that import and export taxable goods and services with China. Read the section on customs duties in this article for more information.Ĭhina has promulgated a series of regulations to reduce import-export taxes and duties to promote a higher level of openness and domestic consumption. Starting January 1, 2022, China has further adjusted parts of its customs duties, including most-favored-nation (MFN) duty rates, conventional duty rates, and provisional duty rates for some import products.This article explains three types of taxes – value-added tax (VAT), consumption tax, and customs duties – that foreign companies exporting to or importing from China must understand.It was last updated on December 22, 2021. ![]() This article was originally published in March 2013. Ari Chernoff and Zoey Zhang Reading Time: 7 minutes ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |