Overview of Tax in ChinaAs one of the largest markets in the world, China is attracting increasing global investors.  In order to run your business in the most efficient manner, you should understand the potential tax costs that would incur before incorporating a China company such as a WOFE, and needless to say, after your China company has been established. An overview of major taxes applicable to foreign investors are listed as follows:Tax on income●Corporate income tax ("CIT"): the standard tax rate is 25%, but if your company is engaged in High Tech industries encouraged by the government, your tax rate can be reduced to 15%.  Tax holiday is applicable to certified high tech enterprises. ●Individual income tax ("IIT") - progressive rates range from 3% to 45%.Tax on transactions (turnover tax)●Value-added tax (VAT) – applicable to the sale of all goods (real estate excluded).  The standard tax rate is 17%. Certain necessities are taxed at 13%.●Business tax – The standard tax rates range from 3% to 20%. Applicable to provisions of services (excluding processing, repair and replacement services), transfer of intangible properties and the sale of real estate properties in China. Other Taxes●Land appreciation tax●Resources tax●Real estate tax●Vehicle and vessel tax●Motor vehicle acquisition tax ●Stamp tax●Tax levied by the Customs●Custom duties●Deed tax