Way to Pay and Declare Taxes, and Types of Taxes

1. Tax withholding

As to foreign nationals who are non-tax residents, taxes on their incomes from wages and salaries, remunerations for labor services, author's remunerations, and loyalties shall be withheld by the tax withholder (if any), which refers to the organization or individual paying the income, on a monthly or transaction basis instead of final settlement.

Foreign nationals who are tax residents shall pay IIT on comprehensive incomes earned on a yearly basis. The tax withholder, if any, shall be responsible for tax withholding on a monthly or transaction basis. Final settlement, if required, shall be completed during the period from March 1 to June 30 of the year following the receipt of incomes. The regulations on tax withholding are formulated by the competent taxation department of the State Council.  

2. Self-declaration

The taxpayer shall personally make a declaration or appoint an agent to make a declaration of the following taxes to the competent taxation authority as per regulations.  

(1) Tax on comprehensive incomes subject to final settlement

Taxpayer receiving comprehensive incomes and meeting any of the following conditions shall be subject to final settlement according to law:     

1) The taxpayer receives comprehensive incomes from two or more payers and the total amount of annually received comprehensive income exceeds RMB 60,000 after special deductions are excluded; 2) The taxpayer receives incomes from remunerations for labor services, and/or author's remunerations, and/or royalties, and the total amount of annually received comprehensive incomes minus special deductions exceeds RMB 60, 000; 3) The amount of prepaid tax is lower than that of tax payable in a tax year; 4) The taxpayer claims for tax refund.

(2) Tax on business incomes

(3) Tax on taxable incomes, provided that there is no tax withholder

(4) Tax on taxable incomes, provided that the tax withholder fails to withhold the tax

(5) Tax on foreign-sourced incomes

(6) Tax on China-sourced incomes from wages and salaries earned by non-tax residents from two or more payers

3. Ways to Pay Taxes

The taxpayer may make a declaration of taxes personally to the competent taxation authority or turn to remote tax service terminals or mailing service instead.

4. Main taxes applicable for foreign-invested enterprises

(1) Corporate income tax

(2) Individual income tax

(3) Value-added tax

(4) Consumption tax

(5) Customs duty

(6) Deed tax

(7) House property tax

(8) Vehicle and vessel use tax

(9) Vehicle purchase tax

(10) Urban maintenance and construction tax

(11) Increment tax on land value

(12) Stamp tax

(13) Resources tax

(14) Tax on using urban land

(15) Environmental protection tax

Wuhan Municipal Tax Service, State Taxation Administration

Address: No. 909, Jianshe Avenue, Wuhan