How To Register for Capital Gain Tax In China

How To Register for Capital Gain Tax In China

  • The process of applying the capital gains tax has been described as more complex as is the withholding tax that is applied to income income. Related legislation was enacted in recent times and is open to interpretation because only a few guidelines or experiences are available.
  • In some instances, a specific identity or registration within the country of origin is required to be eligible from the domestic as well as DTT exemption.
  • There are numerous nations, e.g. China in China, where the meaning to capital gains taxes is undefined. In such cases, it’s important to determine when to apply accrual for realized or unrealised capital gains tax in order to make sure that the accrual is correct and to avoid penalty interest due to late payment.
  • In the beginning, you have to determine the gain or loss that results from the sale of the asset. It refers to the amount that is different between profits from the sale and the total of the costs of the property, its acquisition and disposal costs , as well as an enhancement expense. In the event that the expense was incurred prior to the date it was incurred , an allowanceable adjustment to account for inflation (this is called indexation) could be made. In certain situations like when the asset is sold through a gift or purchased on dies of owner, the value of the asset is used to replace the sale proceeds as well as the actual cost.

Documents that are required Register for Capital Gain Tax

  • A commercial or industrial business license, or another similar permits for business operation
  • An agreement, contract or articles of association
  • The unifying organizational code
  • A passport, ID card or any other valid ID document that proves the legitimacy of the person who holds it or a responsible owner’s member.
  • Other documents and other information requested by tax authorities of the autonomous region, province or municipal directly under the supervision of the State Council

Office Locations and Contacts

Address of the State Administration for Taxation Yangfangdian Road, Haidian District on the 5th
Zip: 100038
Tel: 010-63417114

State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
Phone: +86-10-68010463/68013447
Facsimile: +86-10-68010463/68013447

What Are All The Eligibility

  • The tax on capital gains can be imposed at 20 percent and has to be paid upon the sale of property such as vehicles, equipment, buildings as well as rights to use land.
  • Capital: Chinese residents and non-domiciles who have been long-term residents of the country are also required to pay tax on global investment earnings. Foreigners who have resided within China longer than 5 years usually are only required to pay tax on their income from Chinese investments.
  • Properties: Homes that have been owned by and used by an person for at minimum five years aren’t exempt from capital gains taxes when transferred to another person; losses resulting from the sale are not deductable from taxable income.
  • Stocks: There’s an exemption in principle for gains made from transfer of stock that are listed in the Chinese stock exchange.


  • Capital gains of an individual are tax deductible in China at a rate of 20 percent.
  • Tax on capital gains for the Chinese company is in addition to the tax that is normally paid.
  • A deduction of 10% at source is taken by capital profits of a foreign corporation located in China.
  • When taxing capital gains earned from the sale of real estate when calculating the capital gain, the cost of the purchase is deducted from the selling price at a rate of 20.

The Information You Need

  • The name and # of ID cards, passports,, or other acceptable ID document from the institution, its legal representative or the owner
  • The address of the business or residence
  • The kind of registration
  • The accounting system
  • The production model and the business operation
  • The production scope and operations
  • The sum in capital (fund) and investment
  • The production term and operation
  • The name and number of the chief financial officer.
  • Other information that is specified in the State Administration of Taxation

Documentation is needed

Capital gain tax (CGT) is the tax on capital gains. It is or the gain realized upon the sale of an inventory asset purchased at a price less than the profit that was realized upon the sale. The majority of capital gains result through the sale of bonds, stocks and precious metals, as well as property.

Information that can be useful

  • Capital taxes on gains (CGT) is an additional taxes on capital gains. which is the gain realized upon the sale of an inventory asset purchased at a cheaper price. The most frequent capital gains result by selling bonds, stocks and precious metals, as well as property. There are many countries that do not have taxes on capital gains and a majority of them have different tax rates for both corporations and individuals.
  • In the case of equities as an example of a liquid and well-liked asset, state and national laws often have a broad variety of fiscal obligations that have to be met in respect of capital gains. Taxes are levied by the state for dividends, transactions and capital gains that are made on the market. However, the fiscal requirements can differ from jurisdiction to location.
  • The tax rate that applies to capital gains China is based on the type of tax payer (i.e. what type of taxpayer they are (i.e. corporation or a company) in addition to whether the tax payer is resident or not in taxation. It is worth noting that, in contrast to the common law tax system, Chinese income tax legislation does not distinguish between capital and income. What is often referred to by tax payers and experts to as tax on capital gains in fact part of the tax structure for income and not being a separate tax framework.

Other uses for the document/certificate

Capital Gains Tax is an assessment tax that you self-assess. It doesn’t matter if you’re registered for tax purposes , you need to determine and settle the tax and submit a return of losses and gains without being asked to make the return by Revenue.

External Links

State Administration for Industry and Commerce People’s Republic of China

State Administr

How To Register for Capital Gain Tax In China
How To Register for Capital Gain Tax In China

ation of Taxation of the People’s Republic of China

Ministry of Commerce, the People’s Republic of China

Tax Law

State Administration of Taxation


Tax revenue In China can be collected by and divided between local and central government. It is the State Administration of Taxation (SAT) is the most powerful fiscal authority of China and is home to SAT offices at city and provincial levels, that are responsible for collecting value-added tax (VAT) as well as consumption tax(VAT), business taxes corporate income tax, as well as other taxation specialized to. Additionally, there are local tax bureaus that report to local governments and charged with collecting corporate tax, individual income tax and other taxes that are specialized. Additionally, imports as well as exports fall under customs duty as well as VAT and consumption tax are paid through customs officials from the General Administration of Customs and its affiliates across the country.




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