China insights: Understanding the China & Hong Kong tax systems
The respective tax systems of the People's Republic of China and Hong Kong have some key differences that a business operating in both tax jurisdictions should be aware of in order to ensure full compliance. This article by MSI's Chinese accounting member LehmanBrown explains both systems and offers a simple comparison.
Mainland China
Tax is the most important source of fiscal revenue collection in the People’s Republic of China (“PRC”) making China more competitive as it has progressively opened up to the outside world and also promoting further development of China’s national economy. Since the tax system underwent substantial reform in 1994 and a subsequent series of policies for optimisation and refinement since, China has built a tax system that is both conducive and adaptable to the market economy.
Under the current tax system in China as of 1st May 2016, there are Five Categories of Taxes.
Read the full article on China & Hong Kong tax systems
