4 Operating in China
Whereas the previous parts addressed the basic political and
legal system of China and the entry into Chinese market, this part
will outline the principle business and commercial regulations
governing the operations of FIEs in China.
4.1 Taxation
- Tax System
Under the current tax system, the PRC imposes about twenty (20)
types of taxes, including enterprise income tax (the
"EIT"), value added tax (the
"VAT"), business tax, property tax,
consumption tax, land appreciation tax (the
"LAT"), land use tax, deed tax, stamp
duty and individual income tax (the
"IIT"). PRC has signed income tax
treaties and arrangements with more than 80 countries and regions,
including two special administrative regions of the PRC, Hong Kong
and Macau.
