AsiaBS
Company Formation
China Company
Representative Office
Company Formation
such as BVI, Samoa etc.
Company Parking
Service in Hong Kong
Service in China
For Representative Office (RO) setup, mother company needs to be at least 2 years old.
And, below cost and fee are examples and applicable only to big cities like Shanghai (SH) and Beijing (BJ). Please contact us for further detail. Thank You.
And, below cost and fee are examples and applicable only to big cities like Shanghai (SH) and Beijing (BJ). Please contact us for further detail. Thank You.
Tax Implications
Although a RO is not to conduct business, it attracts tax on
- Chief Representative, general representative and local staff's Individual Income Tax (IIT)
- Business Tax base on monthly operational expenses (BT)
- Income Tax base on annual operational expenses (IT)
IIT above depends on salary amount while BT & IT roughly amounts to 10% of annual operational expenses.
Rough elaboration on BT & IT payableBusiness Tax = Deemed Turnover x 5% Total Expenses = Deemed Turnover x 85% Deemed Turnover = Total Expenses / 85% Business Tax = (Total Expenses / 85%) x 5% Income Tax = Deemed Profit x 25% Deemed Profit = Deemed Turnover x 10% Income Tax = (Total Expenses / 85%) x 10% x 25% Business Tax + Income Tax = (Total Expenses / 85%) x (5% + 10% x 25%) Business Tax + Income Tax = (Total Expenses / 85%) x 7.5%
- Business Tax + Income Tax = Total Expenses x 8.9%
