Meeting with Guangzhou Municipal Local Taxation Bureau
2016-06-08 | South China
Guangzhou, June 8th - The Finance and Taxation Working Group of the European Chamber, SC Chapter met Jianqiang Li, Deputy Director of Guangzhou Municipal Local Taxation Bureau.
Since the implementation of the VAT reform the Individual Income Tax has been the most significant source of tax revenue for Guangzhou. Guangzhou IIT revenue has exceeded 40 billion in 2015, followed by BT, EIT, Urban Maintenance and Construction Tax and Land Value Added Tax. The taxes contributed from Foreign Invested Enterprises took up one third of the total tax revenue of Guangzhou in 2015.
Regarding the social security fee the Guangzhou Local tax Bureau confirmed that it is compulsory for foreigners to pay the social security fee. The collection of social security is not implemented in the same way in different cities. In some cities, the Local Taxation Bureau is in charge of the collection of social security, in others, the social security fee is collected by other authorities. The reason that foreigners are not enrolled in social security in some cities may be due to the inadequate enforcement. In Guangzhou, Local Taxation Bureau is responsible for collection of social security fees. Local Taxation Bureau use their system of taxation to confirm whether expatriates have been enrolled in social security or not according to their salary declared for IIT purpose.
This meeting concluded with European Business in China Position Paper 2015/2016 handover by Benoit Stos, Finance and Taxation Working Group Chair, European Chamber to Jianqiang Li, Deputy Director, Guangzhou Municipal Local Taxation Bureau.