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Q:
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If a non-resident enterprise’s monthly domestic revenue is less than VAT chargeable sales revenue, can the enterprise enjoy exemption from VAT?
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A:
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Where an organization or an individual outside China without an operation place in China conducts activity subject to VAT in China, the domestic buyer shall act as its withholding agent, except for other regulations stipulated by the Ministry of Finance and the State Taxation Bureau.
Thus, in the above situation where an organization outside China conduct activity subject to VAT inside China, the domestic tax withholding agent should withhold and pay VAT based on applicable tax rate, and the VAT exemption policy that small-scale VAT taxpayers are entitled if the monthly sales revenue does not exceed RMB 150,000 is not applicable.
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Q:
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I rent my own car to a company and the company requests an invoice, what is the minimum threshold for individual income tax? If the rent is RMB2,000 per month, how much income tax do I need to pay at the point when I issue an invoice for a whole year?
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A:
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According to the Individual Income Tax Law, the income obtained from interest, dividends, asset leasing, asset transfer and random income, the proportional tax rate is applicable, and the tax rate is 20%.
If an income from asset leasing is less then RMB4,000 every time, then the chargeable income should be the net amount after deducting expenses of RMB800. If the rental income is more than RMB4,000, then the chargeable income shall be the rental minus 20% expenses.
For asset leasing, the income for each time is what is received within a month.
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Q:
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An accommodation invoice received by our company has only amount without quantity and unit price, is the invoice valid for tax purpose?
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A:
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Fapiao should be issued according to regulated timing, in sequential number, with complete and truthful context, clear printing, all copies are printed at one time, the contents are totally the same, and the invoice sheet and the deduction sheet shall affix special Fapiao seal.
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Q:
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A special VAT electronic Fapiao is issued with wrong amount, can this Fapiao be cancelled and reissued within the same month?
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A:
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No, special VAT electronic fapiao cannot be cancelled. Alternatively, if a taxpayer makes an error when issuing a special electronic fapiao, he may issue a red (negative) special electronic fapiao as a treatment, then issue a correct blue special VAT electronic fapiao.
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Q:
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Is Fibre Broadband service contract subject to Stamp Duty?
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A:
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Items subject to Stamp Duty are as follows:
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Contracts for purchase and sale, manufacturing, construction, asset leasing, goods transportation, warehousing, loan, asset insurance, technology contract, or any documents are contract in nature.
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Documents for ownership transferring.
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3.
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Operating books.
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License of right.
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5.
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Other documents confirmed to be subject to stamp duty by Ministry of Finance.
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Stamp duty is only levied to those items listed on the Tax Item and Tax Rate Table and other items confirmed to be subject to stamp duty by the Ministry of Finance. Hence, the Fibre Broadband service contract is not a stamp duty subject item, so there is no need to pay stamp duty for that.
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FAQ
