Tax system in China

Presented By: Waseka Rashid

Tax is an amount of money that one have to pay to the
government
So that it can pay for public services.
Official name: The People's Republic of China (PRC).

Currency: Chinese yuan renminbi

 Tax history

Tithing Tax

It refers to giving tenth of something. A tithe is a one-tenth part

of something, paid as a contribution to a religious organization
or maybe compulsory tax to government.
 Tax authority of China

The State Council

State administration of taxation (SAT) + Ministry of finance (MOF)

 Tax law of China
 The tax year in China ends on December 31.
 Submit report and pay advances monthly or quarterly
 Interim report
 When the annual income is less than CNY 120,000, an individual is exempt from
submitting an annual report.
 An employer have to submit a monthly report on his employees wages.
 Deduct tax at source to make additional contributions to social security
 Types of tax

Goods and Vat, business tax,

services taxes customs duty, excise tax

Corporate and individual

Income taxes
income tax

Resources tax, stamp

Property and
duty, tobacco tax, Real
behavior taxes
Estate Tax
 Taxes Tax rates
Corporation income tax 20-25%

Individual income tax 3-45%

Business tax 3-20%
Tobacco tax 20%
Vat 17%
Social security tax Companies (37%), employees (11%)
Urban and township land use tax 1.2-30%
Chart of China’s tax revenue in 2015
Tax revenue and growth
 Individual income tax
China Bangladesh
Monthly taxable
Tax rate (%) Yearly taxable Tax rate (%)
income (CNY)
income (Taka)
0 to 3,000 3 2,50,000 Nil
Over 3,000 to 12,000 10 4,00,000 10%
Over 12,000 to 25,000 20
5,00,000 15%
Over 25,000 to 35,000 25
6,00,000 20%
Over 35,000 to 55,000 30
30,00,000 25%
Over 55,000 to 80,000 35
Over 80,000 45 Above 30,00,000 30%
 Child
education
Self
education

Health
care cost

Interest
on
housing
Supporting loan
parents
 Economic review of China:

 Its tax revenue ranks ninth in the world, but first among the
developing countries.

 Its tax to GDP ratio is high.

 Economic transition.

 The overstaffed governments are inefficient.

 Low revenue capacity and insufficient transfer payments

 Successfully established the framework of a market economy

Thank you everyone