|Guangzhou has two bureaus handling different taxes. Here you can find out what taxes are payable by foreign nationals, how individual income taxes are calculated, how the taxes can be paid, and what exemptions and concessions are available. Also you can obtain from here information about taxes on car purchases.|
The Guangzhou Municipal Office of the State Administration of Taxation and Guangzhou Local Tax Bureau are the tax authorities of Guangzhou, each responsible for the collection of different types of taxes.
Under the current Chinese law, eight taxes are applicable to foreign nationals and are collected by the local tax bureau: business tax, individual income tax, urban land use rights tax, land value added tax, urban real estate tax, resources tax, vehicle and vessel tax, and stamp duty. Taxes payable by foreign nationals to national tax authorities include: vehicle purchase tax, individual income tax on savings deposits, and individual income tax on offshore oil exploration enterprises
Foreign nationals in Guangzhou who have formed an enterprise should initiate tax registration formalities with responsible national and local tax authorities within 30 days following the formation of their enterprise or initiation of a taxable transaction.
※ Guangzhou Municipal Office of the State Administration of Taxation
※ Guangzhou Local Tax Bureau
An individual who has a residence in China and an individual who has no residence in China but has resided in China for one year or more must pay individual income taxes on his or her incomes obtained both inside and outside China. An individual who has no residence in China and has not resided in China and an individual who has no residence in China but has resided in China for less than one year should pay individual income taxes only on income obtained within China.
The following 11 types of incomes obtained in China are liable to individual income taxes:
1. income from wages and salaries;
2. income from production and business operation of business entities;
3. income from contracting operations and leases of businesses;
4. income from remunerations for provision of services;
5. income form author's remunerations;
6. income from royalties;
7. income from interests, dividends and bonuses;
8. income from lease of assets;
9. income from transfer of assets;
10. incidental incomes; and
11. other taxable incomes specified by the financial departments of the State Council.
Individual Income Tax Rates for Wages & Salaries
Table of Individual Income Tax Rates (Applicable to Wages & Salaries)
|Grade||Monthly taxable income*||Tax Rates||Quick Deduction|
|1||Over 0||But not over 1,500||3%||0|
|2||Over 1,500||But not over 4,500||10%||105|
|3||Over 4,500||But not over 9,000||20%||555|
|4||Over 9,000||But not over 35,000||25%||1005|
|5||Over 35,000||But not over 55,000||30%||2755|
|6||Over 55,000||But not over 80,000||35%||5505|
|* The monthly amount of taxable income refers to the amount of money when the fees for life insurance, unemployment insurance, work-related injury insurance and housing fund are deducted from the original salary minus 3,000 RMB for tax exemption.|
1. A foreigner's monthly taxable income refers to the balance of his or her monthly income after deducting RMB 4,800 in expenses according to Article 6 of the Individual Income Tax Law and other applicable tax regulations.
2. Tax Payable = Monthly Taxable Income X Applicable Tax Rate - C Allowable Deduction
Individual Income Tax Rates for Other Categories
Incomes from provision of services, author's remunerations, royalties, interests, dividends, bonuses, lease of assets, and transfer of assets, incidental incomes and other incomes, are liable to a 20% tax. Exceptionally high one-off income from provision of services is liable to higher taxes; specifically:
|Grade||Income before Tax||Tax Rate %||Allowable Deduction|
|1||Below RMB 20,000||20||0|
|2||The portion in excess of RMB 20,000 to RMB 50,000||30||2000|
|3||The portion in excess of RMB 50,000||40||7000|
1. Income before tax refers to the amount of income after deducting related expenses according to the Individual Income Tax Law.
2. A 30% concession is provided for income tax on author's remunerations.
3. For the income from each payment for provision of services, author's remunerations, royalties, or lease of assets, a deduction of RMB 800 for expenses is allowed if the income is less than RMB 4,000 and a 20% deduction for expenses is allowed if the income exceeds RMB 4,000.
Tax Exemption Privileges Granted to Foreigners
The following incomes may be exempted from individual income taxes:
1. Incomes of personnel of foreign diplomatic missions in China and other personnel which conform to national regulations;
2. Foreign experts' incomes from wages and salaries which conform to national regulations;
3. Foreigners' housing allowance, meal allowance, removal expenses and laundry fees in non-cash forms or in the form of cash reimbursement; and business travel allowance, home visit allowance, language training expenses and children's tuition fees at reasonable levels;
4. Dividend and bonuses obtained from foreign-invested enterprises;
5. Incomes exempted from tax under international conventions and protocols signed by the Chinese government.
Income from interests on foreigners' savings deposits in China are liable to individual income tax, but enjoy limited tax rates prescribed under tax rules and regulations.
At this moment, China has no specific policy with regard to tax rebate for foreigners who make purchases in China. Foreign diplomatic missions and their officers who have purchased taxed products in China may apply to the competent authority of the Chinese government for tax rebate by presenting the receipts of their purchases. For more information, please contact the Guangzhou Foreign Affairs Office or the Guangzhou Municipal Office of the State Taxation Administration.
How to File Tax Returns and Pay Taxes
Entities and individuals paying employees have the obligation to deduct taxes from their payments and pay the deductions to the tax authority.
Under any of the following circumstances, a taxpayer shall file a tax return or engage a tax agent to do so on his or her behalf with the competent tax authority:
1. The taxpayer's annual income has exceeded RMB 120,000;
2. The taxpayer has obtained wages or salaries from two sources in China;
3. The taxpayer has an income from outside of China;
4. The taxpayer has obtained a taxable income but the paying party has no obligation to deduct tax payments from the income.
An individual taxpayer, with a newly purchased vehicle, should pay taxes within 30 days of purchase to the appropriate tax authority or to the Guangdong Development Bank's vehicle and vessel tax office.
An individual taxpayer with a non-new vehicle may pay taxes at the Guangdong Development Bank, the Huaxia Bank, or the Guangzhou Municipal Post Office by showing the original or a photocopy of the applicants' driver's license. Alternatively, they may pay taxes via one of the following three electronic self-service tax payment systems downtown - "Good Ease", "e-Channel", and "Payment Ease". Tax payments can also be made via www.payeasy.com.cn.
A commercial motor vehicle with a total displacement of no more than one liter is liable for an annual tax of RMB 240, and a commercial vehicle with a total displacement of more than one liter and a designated capacity of no more than nine passengers is liable for an annual tax of RMB 420.