• +86-021-56880580
  • benny.xu.jianmo@gmail.com


Nowadays, more and more people want to register a company in China and start their own business, so it is inevitable to pay tax. Basically, they may have some knowledge of financial tax laws before starting a company. However, after the establishment of a company, some tax laws are often ignored due to the complexity of the company.
Relationship between registered capital and tax

The amount of tax paid by a company has nothing to do with the registered capital of the company. It is mainly calculated according to the income. When seeing most company licenses, the registered capital only reflects the responsibilities paid by the shareholders, but does not reflect the economic strength of the company. Only paid-in companies initially reflect the economic strength of the company. Because the company should undertake management activity, earned likely also lost likely. In the future, the registered capital of the company does not reflect the economic strength of the company. Therefore, the registered capital of a company always reflects the responsibility of all shareholders. And most of the time does not reflect the economic strength of the company.
Subscription system refers to the company does not have to check capital, and the period of investment is no longer limited. That is to say, after shareholder subscribed finish register capital, can pay by installments, want to agree between shareholder only, can not pay capital all the time, and register capital still is that way. But the responsibility of shareholders is based on subscribed registered capital (that is, the amount of capital contribution is limited).
After the establishment of the company, What kind of tax do you need to pay ?

At present, China is still collecting four types of taxes, including value-added tax, corporate income tax, individual income tax and value-added tax surcharge.
1. Value-added tax:
Small-scale taxpayer: VAT payable = (income / 1+3%) ×3%
General taxpayer: VAT payable = monthly output tax - (monthly input tax + the input tax retained in the previous period)
Note: the tax rates are different according to the company's industry. The main tax rates are: 6%, 10% and 16%. At present, the monthly sales of small-scale taxpayers do not exceed 30,000RMB, and the quarterly sales do not exceed 90,000, can be exempted from VAT, that is, we usually say zero declaration.
2. Enterprise income tax
Enterprise income tax payable = total profit ×25%
That is, the income after the establishment of the company, minus the costs generated during the operation of the company, is what we call the total profit; The 15% tax rate can be applied to high-tech enterprises and eligible companies, and qualified small and micro enterprises only need to pay corporate income tax at half of the actual tax rate.
3. Individual income tax
Should hand in individual income tax = shareholder share out bonus 20%
The individual income tax that we say now, for company investor, reach company shareholder, in company operation process, the shareholder that produces share out bonus (company (enterprise) share out bonus, it is to point to the profit that should distribute according to the share or enterprise distributive the profit that exceeds dividend share) and need pay individual income tax.
4. Value-added tax surcharge:
VAT surtax payable = VAT payable ×10% (about)
Value-added tax surcharge is a kind of additional tax, corresponding to value-added tax, according to a certain proportion of value-added tax levy tax. The taxpayer is the same as the independent tax, but the tax rate is otherwise stipulated, which is based on the existence and collection of value-added tax. It usually includes urban construction tax, education fee surcharge, local education fee surcharge and so on.