ChinaRealNews

Nanchang Cigarette General Factory Included in Top 500 Tax Payers of China 2006

2007-09-13 Nanchang 

The State Administration of Taxation of China and the China Taxation magazine on 8 September announced the ranking of the Top 500 Tax Payers of China 2006. Nanchang Cigarette General Factory was ranked the 59th in the list with tax payment of RMB 2,478 million, an increase of 118 per cent compared with RMB 1,170 million in 2001. It is the sixth year in a row for the cigarette producer in Jiangxi province to be included in the list.

Hong Kong enterprises operating in mainland should consider transformation to reduce tax expenses

2007-08-03 Hong Kong

According to the article written by a tax partner of Deloitte, operating costs of Hong Kong enterprises operating in mainland China rose with the appreciation of Renminbi. The reduction or cancellation of export tax rebate for some products by the Chinese government led to a significant rise in costs of Hong Kong enterprises processing with imported materials. As a result, enterprises processing with imported materials should weigh on the operating environment and tax burdens and consider transformation if necessary, including setting up high-tech companies to enjoy tax discounts, so as to reduce their expenses relating to income and value-added taxes in the mainland.

Interest Rate Rise and Interest Tax Reduction Challenge Attractiveness of Life Insurance Products

2007-07-30 Beijing

The interest rate rise and interest tax reduction have driven the after-tax interest rate for the one-year fixed deposits from the previous 2.448% to 3.1635%, marking the first time for the after-tax banking deposit rate to stand above the life insurance products’ assumed interest rate of 2.5%. As a result, the relevant insurance authority may loosen the rate regulation or improve the assumed interest rate, and the insurers may provide more investment benefits to the policyholders.

Deloitte talks about new Enterprise Income Tax Law’s effect on affiliated enterprises

2007-06-08 Beijing

A tax partner at Deloitte talks about the new Enterprise Income Tax Law’s effect on affiliated enterprises in this article. The New Law unifies the income tax levied on domestic and foreign enterprises, aiming to create a level playing field and a fair fiscal environment that promotes competition and transparency for all enterprises operating in China. The New Law also has far reaching implications for transfer pricing regulations and practice in China. Chapter 6 of the New Law on “Special Tax Adjustments” is primarily devoted to transfer pricing and anti-avoidance rules. The New Law reaffirms the information that must accompany the annual income tax return filed by enterprises. This filing includes the detailed related party transactions that have occurred during the year. The New Law also appropriately requires enterprises to submit relevant transfer pricing documentation when requested by the tax authorities in the course of a transfer pricing audit. This is strongly reinforced by a provision that empowers the tax authorities “to assess taxable income in accordance with laws and regulations” when a taxpayer provides false or incomplete information or documentation.

Mainland people working in Hong Kong should pay tax

2007-05-25 Hong Kong

According to the Inland Revenue Ordinance, a tax payer should inform the Hong Kong Inland Revenue Department in writing within four months after the tax year (before 31 July) unless he receives tax return. Tax payers are required to submit personal information (ID card number, address, telephone number, marital status and number of children) for archive use. If a tax payer, whose revenue exceeded tax allowance, didn’t receive tax return, he should inform the Inland Revenue Department by 31 July, said a tax partner with Deloitte.

Use environmentally friendly equipment in Mainland China to enjoy tax benefits

2007-05-18 Beijing

The new Enterprise Income Tax Law of China will come into force on January 1, 2008 and, when the time comes, enterprises in China and abroad will enjoy a unified tax rate of 25 percent. Cathy Jiang, a tax partner at PricewaterhouseCoopers, indicated that some environmentally friendly and energy-saving industries may be able to enjoy tax relief under the new law. She recommended companies set up research and development centers or use environmentally friendly equipment there to enjoy tax benefits.

Make best use of tax deduction opportunities

2007-05-15 Beijing

Every tax payer is allowed to enjoy ten times of tax deduction concerning the mortgage interest rate in his/her life time which can be used continuously or at an interval of time, with the maximum reduction amount of HK$100,000 for each year. Tim LUI, a tax partner at Pricewaterhouse Coopers, advises the tax payers to check their mortgage interest rate annually. The payers should know that the interest cost for the first several years is higher, said Tim.

China Airlines Hong Kong business records flat growth in cargo revenue

2007-05-15 Hong Kong

An executive responsible for Hong Kong business of China Airlines said in an interview that the company recorded a flat growth in revenues from its cargo business in Hong Kong in the first quarter of 2007, due to a lower carriage resulting from enhanced cargo capacity in the mainland China market. However, the cargo load factor remained stable at a high level (98 per cent) in the first quarter.

208 applications received in the first 19 days; environmental-friendly cars sell well stimulated by tax incentives

2007-05-14 Hong Kong

Since the Hong Kong government launched tax incentives for environmental-friendly cars last month, 208 applications have been received in the first 19 days, with involved tax incentives of over HK$4.2 million. However, some environmental-friendly people pointed out that although it is good for the car owners to use environmental-friendly cars, it is not of much help to improve the whole air quality. Of the twelve environmental-friendly cars, Nissan Serena is the most popular, followed by Honda Step WGN (2.0) and Toyota Prius. It is expected that more environmental-friendly cars will be shipped to Hong Kong.

Annual salary of taxpayers reaches HK$380,000 per capita

2007-05-11 Hong Kong

Income of Hong Kong’s 1.252 million taxpayers in 2005-06 hit a record to HK$474.7 billion. This translates into an annual salary of HK$380,000 per capita. Marcellus Wong, tax partner with PricewaterhouseCoopers, said that the number of taxpayers in 2005-06 decreased compared with 1.33 million in 1997-98, but the salaries tax increased. This means that Hong Kong has a narrow tax base, according to Marcellus.