#

Ease of Doing Business in

China

China Download Profile (2200.4KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 1,371,220,000
GNI Per Capita (US$) 7,820
City covered Shanghai, Beijing

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 78 80 up
2
64.28 62.86 down
1.42
Starting a Business 127 134 up
7
81.02 77.46 up
3.56
Dealing with Construction Permits 177 175 down
2
48.52 48.29 up
0.23
Getting Electricity 97 92 down
5
68.73 68.66 up
0.07
Registering Property 42 42
-
76.15 76.15
-
Getting Credit 62 78 up
16
60.00 50.00 up
10.00
Protecting Minority Investors 123 118 down
5
45.00 45.00
-
Paying Taxes 131 127 down
4
60.46 60.50 down
0.04
Trading across Borders 96 94 down
2
69.13 69.13
-
Enforcing Contracts 5 4 down
1
77.98 77.98
-
Resolving Insolvency 53 53
-
55.82 55.43 up
0.39

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

60.47

DB 2016 DTF (% points):

60.77

Change in DTF (% points):

down0.30

Indicator Shanghai East Asia & Pacific OECD high income
Payments (number per year) info_outline 9 22.9 10.9
Time (hours per year) info_outline 263 198.0 163.4
Total tax rate (% of profit) info_outline 67.7 33.9 40.9
Postfiling index (0-100) info_outline 48.6 59.6 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Employer paid - Social security and housing fund contributions 1 110 35%+7% gross salaries 48.03
Corporate income tax 1 online 63 25% taxable profits 7.58
Urban maintenance tax 0 jointly 7% VAT and BT 3.54
Land Appreciation Tax 1 30% land value appreciation 2.85
Education surcharge 0 jointly 3% VAT and BT 1.52
Local education surcharge 0 jointly 2% VAT and BT 1.01
Stamp duty 1 online 0.03% transactions 0.97
Real estate tax 1 1.2% 80% building value 0.97
Business tax 1 5% capital gain 0.51
Levies for construction and maintenance of river projects 0 jointly 1% VAT and BT 0.51
Land use tax 1 online RMB 6 per square meter land area 0.15
Stamp duty on property transfer 1 0.05% sale price of property 0.03
Value added tax (VAT) 1 online 90 17% value added 0.00 not included
Employee paid - Social security and housing fund contributions 0 jointly 10.5%+7% gross salaries 0.00 withheld
Totals: 9 263 67.7
  • Answer
    Profit tax (% of profit) 10.8
    Labor tax and contributions (% of profit) 48.8
    Other taxes (% of profit) 8.7
    Answer Score
    Postfiling index (0-100) 48.6
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process Restricted to international traders and others
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits 94.5
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 4.5 94.5
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority The Taxation Administrative Reconsideration Committee
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 60 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.