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Main VAT Rules

Main VAT Rules in China – Overview Here is a clear and structured summary of the key VAT (增值税) regulations in China, useful for foreign companies, WFOEs, importers, and exporters. 1️⃣ Types of VAT Taxpayers: “General Taxpayer”...Details

Wage Negotiations in China

In China, it is common practice for salaries to be discussed and negotiated on a net-pay basis (net of Individual Income Tax – IIT, but before employee social security contributions), especially for: skilled local employees ...Details

Management fees in China

A company in China (WFOE, JV, regional HQ, etc.) can pay: management fees, service fees, royalties, intragroup service charges. ➡️ All of this is allowed in theory, but China strictly controls such payments because they can...Details

Dividends can be repatriated abroad

Foreign-invested enterprises in China have the right to repatriate profits to their overseas parent company, as long as specific conditions are met. 2. Prerequisites for distributing dividends ✔️ A. Annual statutory audit is mandatory Before paying any...Details

Employer Social Security Contributions in China

Employer Social Security Contributions in China: Structure, Rates, and Key Principles In China, employers must contribute to several mandatory social security funds for each local employee. This system is known as “Five Insurances + One Housing Fund”...Details

China allows several types of employment contracts

China allows several types of employment contracts, but the rules differ significantly from those in France. Here is a clear and up-to-date (2025) summary: 1. CDI (open-term contract) — 无固定期限合同 This is the most protective type...Details