23 June 2016
Online CBA: Is It Necessary to Pay Tax on the Online Sales of Goods in China? How Is Retail Sales Tax Calculated in China? What Are the Procedures for Starting a Company in China?
Q: Is it necessary to pay tax on the online sales of goods in China? How is retail sales tax calculated in China? What are the procedures for starting a company in China?
A: Generally speaking, there is no need to pay tax on the online sales of goods in China, but online sales platforms (such as Tmall and JD.com) charge clients miscellaneous fees. Companies set up in China for the online sales of goods must pay enterprise income tax if they make profits from such sales. Please see Guide to Doing Business in China compiled by HKTDC Research for information concerning the procedures for establishment of companies in China and the relevant tax rules.
1. Procedures for establishment of companies
(The HKTDC provides one-on-one China Business Advisory Service free of charge to assist companies in resolving problems encountered when doing business in China. For enquiries and appointments, please call (852) 1830 668 or register online.)