Malaysia Hotline: +603- 2141 8908
China Wholly Foreign Owned Enterprise (China WFOE) is an
independent China legal entity registered with only foreign capital under the
laws of China. The Board of directors (if any) and legal representative are
appointed by the foreign parent company. The WFOE is governed by the China
company laws and regulations. The WFOE is similar to a limited liability
company in Hong Kong. Legally, the minimum capital to be registered can be as
low as USD15, 000 (RMB100, 000). However, the registered capital is usually
much higher than this. The registered capital is dependent upon the WFOE type
(business scope) and other practical reasons.
China Taxes
WFOE pays enterprise income tax (and other turnover taxes if
applicable). The tax rate has been leveled with local Chinese companies at 25%
of the net profits. The tax is usually paid on a quarterly basis to the State
tax bureau. There are still some cities giving out tax concessions to
encouraged industries or export-oriented industries to pay enterprise income
tax at a reduced rate at 15%.
However, these tax incentives are getting more difficult to
obtain as the qualification process becomes much more stringent. The individual
income tax of the employees of the WFOE must be deducted and withheld from the
salary payment on a monthly basis. The employer is obliged to deduct tax at
source and paid to the Local tax bureau.
Taxation of a Wholly
Foreign-Owned Enterprise
There is a great variety of different taxes in China, and a
WFOE may have to file various different types of tax return, monthly, quarterly
or annually, covering Enterprise Income Tax, Value Added Tax, Business Tax,
Consumption Tax, Stamp Duty, Land Appreciation Tax, Withholding Tax (on foreign
remittances), and, if there are employees, Income Tax and social security
contributions, which are withheld from pay on a 'PAYE' basis.
Tannet Malaysia is an international consultant firm based in Hong Kong, Shenzhen. We do have over 10 branches in China which I believe we are your best choice for your ASIAN investment. We provide one stop business solution from pre-setting up preparation to incorporation, management to operation, market strategics and brand protection and etc. Kindly contact us for more information.
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us
If
you have further queries, please contact Tannet
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hours Malaysia hotline：603-21418908;
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hours Hong Kong hotline：852-27837818;
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hours Hong Kong hotline：86-755-
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Email:
mytannet@gmail.com
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