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, desde que sejam elegíveis para se inscrever.
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 GContribuinte geral.
Here are some quick facts of both categories
- Small-scale Taxpayers are exempt from imposto de Renda given the business revenue is less than RMB 100,000. The corporate imposto de Renda 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 A 31 de marçost 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.
Não há nenhuma vantagem absoluta em ser também. Dependendo das circunstâncias e da necessidade dos empresários, um pode ser mais atraente do que o outro.
Quem pode se inscrever?
- Investors from certain sectors could only be registered as Contribuintes Gerais (por exemplo, estação de patrulha). Os candidatos de todos os outros setores são elegíveis para se inscrever, assumindo que todos os outros critérios sejam satisfeitos.
- The accumulated revenue of applying enterprise shall not exceed 5 million RMB during the past consecutive 12 months.
- The application deadline is 31st Dezembro de 2020. No entanto, a empresa havia se inscrito para ser Contribuinte Geral 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 da data de apresentação do pedido. Vendas tributáveis ocorridas antes da data de apresentação; a fatura de IVA deve ser emitida como Imposto Geralpayer.
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