The 2008 Enterprise Income Tax Law applies to both domestic and foreign enterprises in China. There may be preferential tax rates available to certain companies with high technology status or those operating in Western China.
Australian exporters should determine the rate of Value Added Tax (VAT) which may apply to their goods when developing pricing strategies.
China and Australia have signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Advice on the tax implications in international trade should be obtained from professional tax advisers, accountants or lawyers. The website of the State Administration of Taxation of the People’s Republic of China provides additional information, and the Australian Taxation Office can advise on Australian tax implications.