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, étant donné qu'ils peuvent postuler.
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 Gcontribuable général.
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 1st Au 31 marsst 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.
Il n'y a aucun avantage absolu à l'être non plus. Selon les circonstances et les besoins des propriétaires d'entreprise, l'un peut être plus attractif que l'autre.
Qui peut postuler?
- Investors from certain sectors could only be registered as Les contribuables généraux (par exemple, station de patrouille). Les candidats de toutes les autres industries peuvent postuler, à condition que tous les autres critères soient satisfaits.
- The accumulated revenue of applying enterprise shall not exceed 5 million RMB during the past consecutive 12 months.
- The application deadline is 31st Décembre 2020. Cependant, l'entreprise avait demandé à être Contribuable général 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 à partir de la date de dépôt de la demande. Les ventes taxables ont eu lieu avant la date de dépôt; la facture TVA est émise comme Taxe généralepayer.
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