Are you wondering the tax policy of Xiamen, China. The following is for you to learn the related tax policy in Xiamen. Hope it can be helpful for you.

Major Tax Policies:

1) Corporate Income Tax
The rate of corporate income tax for foreign-funded enterprises and foreign enterprises is 15%. Foreign-funded enterprises shall be exempted from local income tax.

2) Value-added Tax
Mainly imposed on industrial and commercial enterprises, the value-added tax (VAT) is generally levied on the production, wholesale, retail and import of commodities and taxable labor service, including processing and repairing labor service, with a basic tax rate of 17%.

3) Business Tax

Business Tax Rate Chart

Item	Incidence of Taxation	Tax Rate
Transportation Industry	Land, Water, Air, Pipeline Transportation, Loading & Unloading	3%
Construction Industry	Construction, Installation, Repairing & Maintenance, Decoration and Other Engineering Works	3%
Post and  Telecommunication		3%
Culture & Sports		3%
Finance & Insurance		5%
Service Industry	Factorage, Hotel, Catering, Tourism, Warehousing, Leasing, Advertising and Other Service	5%
Transfer of Intangible Assets	Transfer of Land Use Right, Exclusive Right, Non-Patent Right, Trademark, Copyright, Commercial Prestige	5%
Sale of Fixed Assets	Sales of Buildings and Other Attachments to the Land	5%
Entertainment Industry	Song and Dance Hall, Karaoke, Music Saloon, Golf, Bowling, Billiard,  Recreation and Bars	20%

4) Consumption Tax
For enterprises engaging in the production, entrusted processing, or import of the 11 items of cigarette, wine & alcohol, cosmetics, skin-care & hair-care products, precious jewelry, jade, firecracker, fireworks, gasoline, diesel, vehicle tire, motorbike, car (including sedan, cross-country vehicle, mini-bus), consumption tax is to be levied together with the value-added tax. The consumption tax is to be calculated either on the basis of price, quantity or the combined. Goods as roll tobacco and the white wine are levied on the basis of both price and quantity. The millet wine, beer, gasoline, and diesel oil are levied on the basis of quantity.

5) Urban Real Estate Tax
(Tax is to be levied on the housing property of the foreign-invested enterprises but no tax is levied on the land property)

A) Taxpayer: The housing property tax is to be paid by the owner of the relevant housing property. In case the housing property is mortgaged, the housing tax shall be paid by the pawnee. If both the property owner and the pawnee live outside Xiamen, or if the property right has not yet been settled, or if there is an unsettled dispute in the lease or mortgage of the housing property, the tax is to be paid by the superintendent or the user.
B) Tax Calculation Reference: Tax is calculated according to the net book value of Jan. 1st every year. In case of house leasing, tax is to be calculated on the basis of the rent.
C) Tax Rate: 1.2% per year for taxes calculated on house price; 12% per year for taxes calculated on house rent.
D) Tax Submitting: The housing property tax is to be paid twice a year in March and September.

6) Vehicle and Vessel License Tax
All the foreign-funded enterprises, foreign enterprises and foreign citizens, who own and use vehicles and vessels in China, have the obligation to pay license tax for vehicles and vessels based on the type, tonnage and stipulated tax rate.

License Tax for Vehicles

Type		Annual Tax	Remark
Passenger vehicle	Less than 7 seats	RMB Yuan 160	Tax for large, medium-size and small jeeps is levied according to the number of seats, excluding the driver seat.
	8-41 seats	RMB Yuan 240
	over 41 seats	RMB Yuan 320
Trucks		RMB Yuan 56 per ton	Levied according to net tonnage
Motorcycle	Two-wheel	RMB Yuan 48	i.e. motorbike
	Three-Wheel	RMB Yuan 60
Passenger Trailer	Less than 7 seats	RMB Yuan 112	The trailer refers to the vehicles driven by the car or tractor, without any engine in it.
	8-41 seats	RMB Yuan 168
	Over 41 seats	RMB Yuan 224
Cargo Trailer		RMB Yuan 40

License Tax for Ships and Boats

Type		Annual Tax Per Ton
Motor Ships  or Boats	Below 50 tons	RMB Yuan 1.2
	51-150 tons	RMB Yuan1.4
	151-300 tons	RMB Yuan1.6
	301-500 tons	RMB Yuan 1.8
	501-1000 tons	RMB Yuan 2.2
	1001-1500 tons	RMB Yuan 2.6
	1501-2000 tons	RMB Yuan 3.2
	2001-3000 tons	RMB Yuan 3.8
	Over 3001 tons	RMB Yuan 4.4

7) Personal Income Tax
Personal income tax is to be levied on the individuals who have residence in China or have no residence in China but have lived in China for more than one year, as well as the individuals who have no residence and do not live in China or have no residence in China but live in China for less than a year.

Personal Income Tax Rate

	Dutiable Items	Standard of Deducted Amount	Tax Rate	Remarks
1	Wages or Salary	RMB Yuan1600 for Chinese Citizens and RMB Yuan4800 for Foreigners	5%~45% (see the attached tax rate chart I)
2	Production and operation income of individually-owned industry & commerce	Cost, Expenses and Loss	5%~35%
3	Contracting and leasing income of the enterprises and institutions	RMB Yuan 800 for each month; i.e. 800 *12 for a year	5%~35%
4	Labor income	The deducted amount shall be RMB Yuan 800 if the labor income is less than RMB Yuan 4000 each time, and 20% of the total if the income exceeds RMB Yuan 4000.	20%	An extraordinary high one-time income is subject to an additional levy: if the taxable income exceeds RMB Yuan 20000 but less than RMB Yuan 50000, the amount exceeding RMB Yuan 20000 shall be calculated as 150% for tax levy; if the taxable income exceeds RMB Yuan 50000, the exceeding amount shall be calculated as 200% for tax.
5	Interest, dividends, bonus		20%
6	Author's remuneration	Same as Item 4	20% (can be reduced by 30% of the taxable amount)
7	For the use of chartered rights	Same as Item 4	20%
8	Income from property leasing	Same as Item 4	20%
9	Income from property transfer	The deducted amount shall be the deduction of property original value and reasonable expenses from the income of the transfer of property	20%
10	Occasional income		20% (It is tax-exempted if the amount is less than RMB Yuan 200. For social welfare or sport lottery income, the amount less than RMB Yuan 10000 is tax-free and when over RMB Yuan 10000, it shall be levied at full amount.)
11	Other income as specified by the State Council or the Ministry of Finance		20%

List of Tax Rates (Applicable to the income of salary and wages)

Grade	Tax Grade (RMB Yuan)	Tax Rate %	Deduction factor of fast calculation
1	500 or less	5	0
2	500 ~ 2,000	10	25
3	2,000 ~ 5,000	15	125
4	5,000 ~ 20,000	20	375
5	20,000 ~ 40,000	25	1375
6	40,000 ~ 60,000	30	3375
7	60,000 ~ 80,000	35	6375
8	80,000 ~ 10,0000	40	10375
9	Over 100,000	45	15375
Remark: Tax grade listed in the table refers to the income after the deducted amount.

8) Customs Duty Exemptions and Reductions
Except for the goods listed in "Imported Goods without Duty Exemptions for Foreign Investments", the self-use equipments within the total investment amount imported for foreign-invested projects which involves transfer of technology and falls into the category of encouraged items in "Guideline for Foreign Invested Industries within the total investment" are exempted from customs tariff and import VAT.
The imported goods without duty exemptions include: televisions, video cameras, video-players, hi-fis, air-conditioners (central air-conditioners excluded), refrigerators, ice-boxes, washing machines, cameras, copy machines, SPC telephone exchange, micro computers and peripheral equipment, telephones, wireless beepers, faxing machines, electronic calculators, typewriters, word processors, cars, motorbikes and other dutiable items listed in Chapter 1 to Chapter 83 and those in Chapter 91 to Chapter 97 of "Duties on Imported Goods of the Customs of P.R.C." (Technology, accessories and spare parts imported with the project equipment excluded).

9) Export Tax Refund
Goods exported by foreign-funded enterprise are covered by the scheme of tax exemption, tax offset and tax rebate.

• The value added in the current process (or the last process) of goods exported by the productive enterprise is tax exempted.
  
• The tax is calculated at FOB price and the difference between tax rate and tax rebate rate shall be deducted from all the paid tax of the enterprise on purchase. The rest of the paid tax on purchase can be offset by the tax on domestic sales.
  
• Should the sales tax be insufficient for the offset, the balance can then be reclaimed from the relevant authorities for tax rebate.

Refer to: http://www.fdi-xiamen-cn.com/v5/en-p02-004-001-01.php

Edited by Kevin from Xiamen Romandy Art Limited.
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(Tag: Tax Policy for Investment in Xiamen China,  Oil Painting Reproduction in China,  Oil Painting Supplier from China, Xiamen Investment Policy, Xiamen Government Policy for investment.)