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, dado que son elegibles para postularse.
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 Gcontribuyente general.
Here are some quick facts of both categories
- Small-scale Taxpayers are exempt from income tax given the business revenue is less than RMB 100,000. The corporate income tax 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 1S t Marzo al 31S t 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.
No hay ninguna ventaja absoluta en serlo. Dependiendo de las circunstancias y la necesidad de los dueños de negocios, uno puede resultar más atractivo que el otro.
¿Quiénes son elegibles para postularse?
- Investors from certain sectors could only be registered as Contribuyentes Generales (por ejemplo, estación de patrulla). Los solicitantes de todas las demás industrias son elegibles para postularse, asumiendo que se satisfacen todos los demás criterios.
- The accumulated revenue of applying enterprise shall not exceed 5 million RMB during the past consecutive 12 months.
- The application deadline is 31S t Diciembre de 2020. Sin embargo, la empresa había solicitado ser Contribuyente General 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 a partir de la fecha de presentación de la solicitud. Las ventas sujetas a impuestos ocurrieron antes de la fecha de presentación; la factura con IVA se emitirá como Impuesto generalpagsayer.
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