The China Tax Guide

This guide is a practical overview for the international businessman to understand the rules, regulations and management issues regarding taxes in China. It is written very much from practical experience. We will help you to understand the implications of

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Dezan Shira & Associates is a specialist foreign direct investment practice, providing business advisory, tax, accounting, payroll and due diligence services to multinationals investing in China, Hong Kong, India and Vietnam. Established in 1992, the firm is a leading regional practice in Asia with seventeen offices in four jurisdictions, employing over 170 business advisory and tax professionals. We also provide useful business information through our media and publishing house, Asia Briefing.

Chris Devonshire-Ellis  Andy Scott  Sam Woollard Editors

The China Tax Guide Fifth Edition

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Editors Chris Devonshire-Ellis Andy Scott Sam Woollard Dezan Shira & Associates Asia Briefing Ltd. Unit 1618, 16/F., Miramar Tower 132 Nathan Road, Tsim Sha Tsui, Kowloon Hong Kong, PR China e-mail: [email protected]

ISSN XXXX

e-ISSN XXXX

ISBN 978-3-642-14915-3

e-ISBN 978-3-642-14916-0

DOI 10.1007/978-3-642-14916-0 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2010938197 Published by Springer-Verlag Berlin Heidelberg 2011 Ó Asia Briefing Ltd. 2007, 2011 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: eStudio Calamar, Berlin/Figueres Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

About China Briefing’s China Business Guides

Thank you for buying this book. China Briefing’s publications are designed to fill a niche in the provision of information about business law and tax in China. When we decided, several years ago, to commence this series, we did so in the knowledge that much that was available about China was either expensive, or completely contradictory. This guide is designed to change that perspective and provide detailed information and the regulatory background to business in China—but with a firm eye also on the details of making money and remaining in compliance. Accordingly, we have made this guide informative, easy to read and inexpensive. To do so, we have engaged not a team of journalists or academics—but the services of a respected professional services firm to assist us. The articles and materials within have been