Value－added tax

Value－added tax is levied according to three categories:

• The basic rate is 17％
• The lower rate is 13％
• Zero tax rate is applicable to export of goods and the rate for sales of small－scale taxpayers and taxable services is 4％ for commercial enterprises, 6％ for industrial enterprises.
  

The formula for computing the value－added tax is as follows:

Individual taxpayers

• Net Tax payable= tax payable for the period - tax received for the period
• Tax payable = sales amount * tax rate;
• Consumption tax, business tax and stamp tax are collected in accordance with relevant state stipulations.

• The rate for enterprises in productive nature with foreign investment is 15％. 
• The rate of local income tax is 3％ of payable income tax.
• For domestic enterprises, if payable income tax is less than 30,000 yuan per year (including RMB 30,000 yuan), the rate is 18％; more than RMB 30,000 yuan to RMB 100,000 yuan (including RMB 100,000 yuan)， the rate shall be 27％; over RMB 100,000 yuan, the rate shall be 33％

Note: The monthly taxable amount of income listed in the table refers the balance of foreign personnel’s monthly income less 4,000 yuan, and the balance of Chinese residents’ monthly income less 800 yuan and 100 yuan, the latter is stipulated as the fixed amount of various subsidies.

• Any unit and person, who own land using right, should pay annually according to RMB 2 yuan per m2.
• The formula for calculating the value is as follows:
  Tax payable per year=actually covered land area(m2)×RMB 2 yuan/m2

• Annual real estate tax payable (foreign－funded enterprises)=original value×（1－30％）×1.2％; or rental income　×12％
  
• Annual real estate tax payable (domestic－funded enterprises)=original value×(1－deduction rate)×1.2％ or rental income×12％

Units and individuals getting income from the transfer of state－owned land use rights, buildings and their attached facilities shall be taxpayers of the land appreciation tax.

The land appreciation tax shall adopt four level progressive rates as follows:

• For that part of the appreciation amount not exceeding 50％ of the sum of deductible items, the tax rate shall be 30％;
  
• For that part of the appreciation amount exceeding 50％, but not exceeding 100％, of the sum of deductible items, the tax rate shall be 40％, the quantity of land value added tax=quantity of value added×40％－amount of deducting project ×5％
  
• For that part of the appreciation amount exceeding 100％, but not exceeding 200％, of the sum of deductible items, the tax rate shall be 50％, the quantity of land value added tax=quantity of value added×50％－amount of deducting project ×15％
  
• For that part of the appreciation amount exceeding 200％ of the sum of deductible items, the tax rate shall be 60％,the quantity of land value added tax=quantity of value added×60％－amount of deducting project ×35％
  

In the formula, 5％,15％ and 35％ are deduct coefficient for quick calculation

To every kind of service project that needed to collect fee, it should decrease 20％ from the present stipulated standard to collect, in accordance with the principle of enterprise voluntaries, commission handling and paid service.

Note: For more detailed information, consult the Administration on City Construction or relative authorities.

Land Use Fees

1. Price for transferring the using right of land: industry used land for 50 years, 26 US dollars per square meters.
   
2. Land use fee: For the invested enterprises inside the zone that obtain land using right through transferring it, RMB 1 yuan per square meters per year.

Insurance and Welfare Costs