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Company tax payable by foreigners to start a company in mainland China

The following are the main corporate taxes involved in the establishment of a company (provided by PwC China) ○ China is one of the biggest markets in the world and is attracting more and more global investors to move into the China market. In order to run the business in a most cost efficient way, it is necessary for the foreign investors to understand all the potential relevant tax costs that would be incurred in China before making an investment decision. In addition, different type of investment activities will trigger different types of taxes. Ⅰ. Tax on income a. Corporate income tax (“CIT”) – standard tax rate is 25%, but …

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