For most people, taxes are just an inconvenience to be addressed and then moved past. It is a season of the year where a large ambiguous government presence takes some of your money like a roulette and, if you are lucky, lands in your favor and refunds you some or all of it. Taxes aren’t that simple, however, especially in other countries. The China tax system is a lot more complex than a roulette; here are three factoids about China’s tax system that you may not have known about:
1. They are Only Handled by One Small Part of the Government
Taxes are irrefutably a process that reinforced a top down perspective of the government. However, they are not part of a power structure that involves the entire government; only a small part of the government is actually involved with this task. The most important tax laws in China are first passed by the People’s Congress and later upheld by the state council while the rest of the government focuses on other matters. It is certainly less of a unified effort than it may at first seem.
2. They Often Delegate the Workload Elsewhere
Since there is a limited amount of resources devoted to this issue by the Chinese government, and because this issue is so important to the success of the nation as a whole, the officials in charge of these government divisions often hire outside consultants to pick up some of the slack with international tax services. These consultants help with everything from business decisions, how best to delegate work, or even helping organize audit services.
3. High Tech Corporations are Given Tax Cuts
Whether by merit of these consultants’ international tax services or their own judgment, China offers up to a fifteen percent tax cut for companies that qualify as new tech corporations. This encourages growth in that sector overall since there is more of a profit to be made. Perhaps that is why China is finding so much success in innovation lately. What do you think about these tax ideas? Find out more at this site.