China has several major tax categories that businesses need to be aware of. One of the primary taxes is Value Added Tax (VAT) 💸, which is levied on the value added to goods and services at each stage of production and distribution. Another important tax is Corporate Income Tax (CIT) 🏢, applied to the profits of companies. Small and micro enterprises may enjoy preferential tax rates to encourage entrepreneurship and growth.
Additionally, there's Stamp Duty 📝, charged on legal documents like contracts or deeds. Environmental Protection Tax 🌱 was introduced to promote sustainable practices by taxing pollution emissions. Urban Maintenance and Construction Tax 🏙️ is another tax linked to VAT and CIT, used for urban infrastructure development.
These taxes play a crucial role in funding public services and national development while ensuring fair economic competition. Businesses must stay informed about these obligations to comply effectively and avoid penalties. 😊