What are the main kinds of taxes I should consider if I am going to do business in China as a foreigner? What are the specific laws that govern these taxes?
Anyone engaged in business can't avoid the issue of taxation. Doing business in China is certainly not an exception. Depending on what kind of business you are doing and what stage of the business you are in, you will be faced with different kinds of taxes: value added tax, business tax, enterprise income tax and individual income tax. However, an important tax that you should pay special attention to is the enterprise income tax, as this tax has an especially high rate for foreigners, according to whether you are engaged in a foreign investment enterprise or a foreign enterprise. The Income Tax Law of the People's Republic of China Concerning Foreign Investment Enterprises and Foreign Enterprises, otherwise known as the "Enterprise Income Tax Law that governs this tax, was promulgated in 1991.
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