Main Taxes

Items

Standard

Company income tax

25% income tax should be applied according to the China’s New Income Tax Law newly affected from Jan.1st, 2008.
15% income tax applied if the company is proved as High-tech Enterprise Encouraged by China

Real Estate Tax

18% rental tax shall apply if the location is within downtown area.
For self usage, Property Tax = Property Value×70%×1.2%，3 years exemption applied. Foreign companies not in downtown enjoy property tax exemption.

Personal Income tax（progressive rate 5%-45%）

For Chinese staff：actual income-RMB 1600-Social insurance-Housing Fund

For foreign staff：
actual income-RMB4000

VAT

(Sales Income－Purchase Expenses)×17%

Dyke Maintaining Fee

1. For common manufacturers, 1.2‰ of last month sales income should be paid;
2. Maximum Dyke Maintaining fee is six million RMB per year.

3. From Jan. 1st 2002 to Dec. 31st 2007, Newly set up foreign companies inside Shunde Industrial Park can enjoy two years exemption, and 50% off from the 3rd to fifth year.

For reference only.
Costs are subject to change according to the latest notices of relevant departments.