With the intention to encourage and support all sectors to resume production and operation, the Tax Bureau is now allowing Chinese General TaxPayers to be registered as Chinese Small Scale TaxPayers, sofern sie zur Bewerbung berechtigt sind. 

What are the differences? 

One of the decisions for investors when setting up a business in China is whether to classify the new entity as a Small-scale or Gallgemeiner Steuerzahler.

Here are some quick facts of both categories

  • Small-scale Taxpayers are exempt from Einkommenssteuer given the business revenue is less than RMB 100,000. The corporate Einkommenssteuer rate applicable is 5%. 3% of value-added tax (VAT) applies to them in ALL business transactions. This VAT rate was just reduced to 1% for Small-scale Taxpayers for all sales that occurred between 1st März bis 31st December 2020. (VAT is a similar concept to GST(goods and services tax)in certain countries.)
  • ·6% VAT applies to the General Taxpayer, which could be claimed back from the tax bureau during the annual tax refund. For enterprises with a revenue figure between 1 million to 3 million RMB, the corporate tax rate applicable is 10%. 
  • ·Business owners have the freedom to stay in the category of Small-scale Taxpayers until the accumulated business revenue exceeding five million RMB. 
  • Once business owners declared themselves as General Taxpayers, the option of being a Small-scale Taxpayer is no longer viable to them. 

Es gibt auch keinen absoluten Vorteil zu sein. Abhängig von den Umständen und den Bedürfnissen der Geschäftsinhaber kann einer attraktiver sein als der andere.

2021: Chinesischer Steuerzahler kann einen kleinen Steuerzahler beantragen!

  Wer kann sich bewerben?  

  • Investors from certain sectors could only be registered as Allgemeine Steuerzahler (zB Patrouillenstation). Bewerber aus allen anderen Branchen können sich bewerben, sofern alle anderen Kriterien erfüllt sind. 
  • The accumulated revenue of applying enterprise shall not exceed 5 million RMB during the past consecutive 12 months. 
  • The application deadline is 31st Dezember 2020. Das Unternehmen hatte sich jedoch beworben Allgemeiner Steuerzahler in 2020 are not to be re-registered, small Scale Taxpayer.

How is the VAT invoice (Fapiao)being issued during the transition?

The VAT invoices should be issued on all taxable sales as Small-Scaled Taxpayers ab dem Datum der Antragstellung. Steuerpflichtige Verkäufe erfolgten vor dem Anmeldetag; Die Rechnung mit ausgewiesener Mehrwertsteuer wird ausgestellt als Allgemeine Steuerpayer.

For more information regarding this news or general consultation, feel free to check Our Chinese Business Consulting Services