Tax is a key component of macro-economic policy, and greatly affects China's economic and social development. With the changes made since the 1994 tax reform, China has sought to set up a streamlined tax system geared to a socialist market economy.
VAT produces the largest share of China's tax revenue.[1]:305 Corporate income tax is the next largest.[1]:305
Taxes in China include:
Turnover taxes. This includes VAT and Consumption Tax. Consumption taxes were first implemented in 1994 on items including tobacco, alcohol, cosmetics, and cars, among other goods.[2]:37 The consumption tax was expanded in 2006 to apply to items including yachts, luxury watches, golf equipment, and single use chopsticks, among others.[2]:37 Consumption tax is mainly collected at production and importation.[2]:37 Business tax was a local tax, but replaced by the implementation of VAT nationwide in 2016.[2]:358–359
Income taxes. This includes Enterprise Income Tax (effective prior to 2008, applicable to such domestic enterprises as state-owned enterprises, collectively owned enterprises, private enterprises, joint operation enterprises and joint equity enterprises) and Individual Income Tax. These taxes are levied on the basis of the profits gained by producers or dealers, or the income earned by individuals. Please note that the new Enterprise Income Tax Law of the People's Republic of China has replaced the above two enterprise taxes as of 1 January 2008. Individual income tax in the PRC was not collected until 1980.[2]:8 "There are no local taxes on personal income in China".[3] The top marginal tax rate on high income earners is 45% for the portion of income above 960,000 RMB.[1]:41 Different sources of personal income are taxed differently (for example, income from wages are taxed on a progressive rate; income from royalties is taxed at a flat rate).[2]:125 Personal income tax accounts for less than 7% of China's tax revenue, as of 2019.[1]:305
Generally, China's income tax is a residential system in which income tax is collected both on domestic and foreign income.[2]:103
Since 1 January 2008, the general corporate income tax rate for both domestic enterprises and foreign enterprises is 25%.[2]:133 Various exceptions exist.[2]:135–137 15% tax rate is a concession rate for high-tech companies.[4] Other preferential tax policies may apply for small, low-profit enterprises, enterprises in public infrastructure construction, enterprises employing veterans, or enterprises engaged in cultural production (such as opera troupes).[2]:135–136
Hong Kong and Macau tax corporate income on the basis of territoriality -- only income from the domestic territory is taxed.[2]:133
Resource taxes. This consists of Resource Tax and Urban and Township Land Use Tax. These taxes are applicable to the exploiters engaged in natural resource exploitation or to the users of urban and township land. These taxes reflect the chargeable use of state-owned natural resources, and aim to adjust the different profits derived by taxpayers who have access to different availability of natural resources.
Customs duties. Customs duties are imposed on the goods and articles imported into and exported out of the territory of the People's Republic of China, including Excise Tax.
Environmental Protection Tax: The environmental protection tax was passed in 2016 and became effective in 2018.[2]:77,81 Its purpose is to protect the environment, reduce pollutant emissions, and promote ecological improvement.[2]:81 Taxpayers are enterprises, businesses, and production/management that directly discharge taxable pollutants into the environment in the territory of the People's Republic of China and other waters under the jurisdiction of the People's Republic of China. - In case of tax exception (1) When enterprises, public institutions and other producers/operators discharge taxable pollutants into centralized sewage and domestic waste treatment facilities established by law. (2) When enterprises, public institutions and other producers/operators store or dispose of solid waste in facilities or locations that meet national and local standards for environmental protection.[5] Taxable pollutants include solid waste, atmospheric pollutants, water pollutants, and noise.[2]:411–412
Mined minerals are taxed at a low rate in comparison to the value of the extracted minerals themselves.[6]:15 The rates vary depend on the type and grade of minerals.[6]:50 Resource tax was first established in 1984 on coal, oil, and natural gas.[6]:50 The 1994 tax reform expanded the resource tax to include also include ferrous metals, nonferrous metals, nonmetallic minerals, and salt.[6]:50 Resource taxes were based on the volume of minerals until 2011, when resource taxes became based on the sales value of minerals.[6]:50
China does not have personal property taxes.[2]:58 Property tax only applies to business property.[2]:345 Since the early 2010s, the Ministry of Finance has sought to implement personal property taxes but has been opposed by the National People's Congress and many local governments.[7]:60–61 As of at least early 2024, no personal property tax measures have made it on to the legislative agenda.[7]:60–61 Two of China’s largest cities, Chongqing and Shanghai have trialed property taxes between 0.4% and 1.2% since 2011, mainly targeting second homes, luxury properties, and purchases by non-residents.[8]
China also does not have capital gains tax, gift tax, or estate tax.[2]:58 Interest is also not taxed.[2]:98
Land use sales are a major non-tax component of government revenues.[2]:21 In China, land is not privately owned.[2]:381 It cannot be permanently owned by private individuals or businesses.[2]:381 Local governments own urban land and rural land is collectively owned.[2]:281 Local governments generate significant revenue by selling urban land.[2]:381 Local governments also purchase rural land and resell it at a higher price as urban land.[2]:381
China's fiscal year is the same as the calendar year.[2]:11
Tax filing and payment
Depending on the form of tax, taxpayers in China are required to file tax returns periodically or annually. Filing tax returns often entails giving detailed information about taxpayers’ income, expenses, deductions, and credits. The information provided is used by the tax authorities to assess the taxpayer's compliance with tax laws and regulations and to calculate the taxpayer's tax due. Taxpayers in China are subject to stringent filing and payment deadlines that must be met in order to avoid penalties and enforcement measures.[citation needed]
Monthly and quarterly filing of tax returns
Value Added Tax (VAT), Corporate Income Tax (CIT), Consumption Tax (CT), Resource Tax, and Environmental Protection Tax are taxes that are paid on a monthly or quarterly basis. If taxpayers must file and pay taxes on a monthly basis, they are obligated to do so within the first 15 days of the following month. They must also ensure that the tax authorities must receive tax returns and payments on or before this date. This deadline is set out in the "Provisions of the State Administration of Taxation on the Time Limit for Tax Declaration and Payment”. The main types of monthly taxes include Individual Income Tax(IIT), Value Added Tax, Resource Tax, and Corporate Income Tax.[9][10][11][non-primary source needed]
In China, several taxes have a quarterly reporting requirement. The quarterly tax filings are usually required for CIT and VAT, among others. Taxpayers with quarterly filing deadlines must submit their tax returns within the first 15 days of the month following the end of each quarter (April, July, October, and January). Urban Maintenance And Construction Tax(UMCT), the Education Surcharge, and the Local Education Surcharge are taxes that are due at the same time as the VAT and CT and are paid at the same time, respectively your tax filing frequency.[12][13]
General anti-avoidance rules (GAAR)
Tax evasion was common in China due to underdeveloped tax collection mechanisms and weak law enforcement in the 1980s and early 1990s.[2]:35 To combat tax evasion and other forms of tax avoidance, China has implemented the General Anti-Avoidance of Tax Evasion Regulations (GAAR). The GAAR was introduced for the first time in China in 2008 in the PRC Enterprise Income Tax Law and has subsequently undergone numerous updates and revisions. GAAR's foundational objective is to prevent taxpayers from employing aggressive tax planning techniques to reduce or eliminate their tax obligations. Any tax avoidance arrangement by an enterprise in China is subject to the General Anti-Avoidance Rule, which attempts to guarantee that the arrangement serves legitimate commercial goals and not solely to achieve tax benefits. Investigating whether the company's intention for the tax arrangement is reasonable and legal, as opposed to an illegal attempt to acquire tax benefits, is the goal. Tax authorities can disregard or recharacterize transactions that they deem to be artificial or to lack economic substance under the Chinese GAAR regulations. If a GAAR investigation is to be initiated, the local tax authorities must first obtain approval from the State Administration of Taxation. The request must be elevated through the several higher level tax authorities, which are above the local tax authority, in order to receive this approval. Taxpayers subject to the GAAR provisions in China must provide sufficient documentation to back up the commercial purpose of their transactions, transaction documentation, communications between the taxpayer and parties involved in the transaction, and documentation that can demonstrate that the arrangement has a non-tax avoidance purpose. The tax authorities in China must inform the taxpayer in writing of any challenges made to a transaction under the GAAR provisions and state their justifications.[14]
It is considered that there is no legitimate commercial purpose in the following cases:
(1) More than 75% of the income of foreign enterprises comes from taxable assets in China.
(2) At any point in the preceding year, more than 90% of the foreign corporation's asset value (excluding cash) consists of Chinese assets;
(3) The foreign company has only limited activities and risks, and although legally fully incorporated, it has virtually no economic existence. This provision is specifically aimed at shell companies and similar arrangements.
(4) Overseas tax burden is less compared to direct remittances.
However, a transaction will not be considered an indirect transfer in the following situations:
(1) The exchange of publicly listed shares on a stock market;
(2) When the income would be exempt from Chinese taxation under a relevant tax treaty or agreement if the transaction were direct;
(3) When all of the following conditions are met in the transaction:
The two parties involved in the indirect transfer are part of the same corporate group, where either the transferring company owns more than 80 percent of the shares of the receiving company, or vice versa, or a third company owns over 80 percent of the shares in both the transferring and receiving companies.
The transfer does not result in a reduced tax liability in China.
The receiving company fully pays for the transfer using its own equity.[15]
Tax governance
Most taxes are based on regulations established by the State Council.[2]:11 Detailed tax rules are established by the State Council Committee on Tariff Regulations, the Ministry of Finance, the State Taxation Administration, and the Customs Office.[2]:11 A few kinds of taxes are based on laws passed by the National People's Congress.[2]:11 China also has bilateral tax treaties with numerous other countries.[2]:133 If a domestic tax law conflicts with a tax treaty (for example, a tax treaty may provide more favorable terms for taxation of a foreign enterprise), then the tax treaty controls.[2]:133
In the late 1950s, China abolished the personal income tax.[2]:98 It reinstated the personal income tax in 1980.[2]:98 In the years immediately following its re-implementation, the taxable income threshold was much higher than most people's income and therefore few people needed to pay income taxes until 1987.[2]:101
Beginning with Reform and Opening Up in 1978 and continuing through the early 1990s, China's fiscal policy focused on decentralization and reducing firms' tax burdens in order to improve economic growth.[2]:393–394
In 1984 the State Council announced that China would begin collecting VAT.[2]:37 For a decade, it was imposed only on certain categories of goods and at differing rates.[2]:37
The 1994 tax reform split taxes into three categories: central government taxes (like customs duties), local government taxes (like business taxes) and shared taxes (like VAT).[1]:55 It reduced the number of taxes from 37 to 23.[2]:11 VAT became universally imposed on production, wholesale, retail, and importation of all goods.[2]:37 The 1994 reform also created separate central and local tax authorities which were also separate from the Ministry of Finance or local finance departments.[1]:55 Tax revenues increased in the years following these reforms.[2]:26
The Golden Tax Project was launched in 1994.[2]:38 It established a computerized database of tax records in an effort to improve the efficiency of tax collection, prevent tax evasion, and reduce corruption.[2]:38 Initially piloted with 50 cities, in 1998 the Golden Tax Project expanded to establish a network between local bureaus and the National Tax Administration.[2]:38 As an incentive for buyers to ask sellers for receipts to document VAT, each receipt was also a lottery ticket.[2]:38
Rural taxes and fees were reformed beginning in 2000.[1]:74 On 1 January 2006, the agricultural tax was abolished.[1]:74 Taxes on animal husbandry were also abolished.[2]:27 These rural tax reforms increased the income of farmers and reduced rural inequality.[1]:74 The reforms also put pressure on the financing for lower levels of government.[1]:74
Before 2002 tax reforms, corporate income tax was paid according to the administrative relationship of each company: central government-owned SOEs paid taxes to the central government, with local companies and local SOEs paying taxes to local governments.[1]:59 Under this arrangement, about 60% of corporate income tax was allocated to local governments.[1]:59 This incentivized local governments to create large local enterprises to generate local profits, and sometimes resulted in local protectionism, especially in highly profitable segments like liquor and tobacco.[1]:59
After the 2002 tax reforms, corporate income tax was split with 60% to the central government and 40% to local governments, with some exemptions for special central SOEs.[1]:59
After the Golden Tax Project Phase II was completed in 2003, the VAT invoicing system was made fully electronic.[1]:305–306 Through improved anti-counterfeiting, auditing, and inspection processes, the problem of false invoices declined and the amount of tax revenue collected from VAT increased significantly.[1]:306 The Golden Tax Project was further expanded in 2005 as the government built a more comprehensive records management system for tax collection.[2]:38
Effective 1 January 2008, China merged the corporate tax rate for domestic firms and foreign firms at a rate of 25%.[2]:27 The exception was enterprises in high-tech and new technology industries, which were taxed at 15%.[2]:27
In 2015, the State Administration of Taxation prohibited local tax authorities from inspecting e-commerce businesses.[16]:16
In 2016, business tax was replaced with VAT nationwide.[2]:28
In August 2018, the government amended the laws on individual income tax to allow for itemized deductions from taxable income, including for education expenses and medical expenses.[2]:28,104 The 2018 amendments also increased the threshold at which point income was taxable.[2]:104 The rationale was that these changes would reduce the tax burden on low income families and make the tax system fairer.[2]:105
In 2019, the government reduced the amount of VAT in an effort to stimulate the economy.[2]:73
In 2023, Chinese local governments' fiscal revenues will show a steady increase in proportion to support policies, sending a green light for national economic recovery. The rapid economic improvement resulting from the pandemic has laid the foundation for economic recovery beyond 2022. According to CAFS (the Chinese Academy of Fiscal Sciences) research, China's fiscal situation is expected to improve in 2023, indicating a brighter outlook for the country's local finances. All finance departments are taking many steps to ease the financial burden. The central government paid 10.6 trillion yuan to local governments to help them cope with fiscal decline due to tax and fee cuts. In addition, the central government requested local governments to reduce general spending, establish a mechanism to directly distribute budgets to lower-level governments, and strengthen monitoring of local financial management.[17]
Malware
Companies operating in China are required to use tax software from either Baiwang or Aisino (subsidiary of China Aerospace Science and Industry Corporation), highly sophisticated malware has been found in products from both vendors.[18][19] Both sets of malware allowed for the theft of corporate secrets and other industrial espionage.[20]
GoldenSpy
GoldenSpy was discovered in 2020 inside Aisino's Intelligent Tax Software, it allows system level access allowing an attacker nearly full control over an infected system. It was discovered that the Intelligent Tax software's uninstall feature would leave the malware in place if used.[21]
After GoldenSpy was discovered its creator's attempted to scrub it from infected systems in an attempt to cover their tracks. The uninstaller was delivered directly through the tax software. A second more sophisticated version of the uninstaller was later deployed as well.[22]
The suspicious characteristics of GoldenSpy include: Covert download, occurring two hours after the installation of the Intelligent Tax software, Creation of two autostart services for monitoring and self-restart, Uninstalling the tax software does not remove the GoldenSpy binaries, Beaconing traffic to a domain unrelated to the tax software, and Running with system-level privileges and allowing for remote code execution.[23]
GoldenHelper
GoldenHelper was discovered after GoldenSpy and is an equally sophisticated malware program which was part of the Golden Tax Invoicing software from Baiwang which is used by all companies in China to pay VAT. While it was discovered after GoldenSpy GoldenHelper had been operating for longer. This discovery indicated that Chinese tax software was harboring malware for much longer than suspected.[24][25]
There are many techniques used by Golden Helper. Obfuscation to randomly generate file names during transfer, file system location randomization, random timestamping, IP-based domain generation algorithm, UAC[clarification needed] bypass to eliminate the need for user permissions for installation and elevation to system-level privileges, and more.[26]
Tax revenue over time
As of 2007, a paper reported that about two-thirds of tax revenue was spent at the local level and that "the ratio of central revenue to total tax revenues reached a low of 22 per cent in 1993, before rising to the 50 per cent level following the 1994 tax reform".[27]:46
VAT's significance to tax revenues increased dramatically after its nationwide implementation replaced business tax in 2016.[2]:358–359
China's tax revenue came to 11.05 trillion yuan (1.8 trillion U.S. dollars) in 2013, up 9.8 per cent over 2012. Tax revenue in 2015 was 12,488.9 billion yuan. In 2016, tax revenue was 13,035.4 billion yuan. Tax revenue in 2017 was 14,436 billion yuan. In 2018, tax revenue was 15,640.1 billion yuan, an increase of 1204.1 billion yuan over the previous year. Tax revenue in 2019 was 15799.2 billion yuan. In 2020 and 2021, the total tax revenues were respectively 15431 billion and 17273.1 billion Chinese yuan.[28][29][30][31][32][33][34][35] The 2017 World Bank "Doing Business" rankings estimated that China's total tax rate for corporations was 68% as a percentage of profits through direct and indirect tax. As a percentage of GDP, according to the State Administration of Taxation, overall tax revenues were 30% in China.[36]
Although China's corporate income tax rate is not high by international standards, its revenue from corporate income tax is large.[2]:138 As of at least 2022, revenue from corporate income tax has grown quickly.[2]:138
Business taxes were first levied in China during the Zhou dynasty (1046-256 BCE).[2]:70 The Zhou dynasty also collecting a form of personal property tax called chan bu.[2]:383
Guan Zhong (723-645 BCE) wrote that because taxation would reduce the people's wealth and make them dislike the government, it was better to obtain revenue by monopolizing the sale of salt, iron, forest products, and ore.[2]:5
Confucian thinking generally held that taxation should be low.[2]:3–4Chinese historiography often attributes the collapse of dynasties to the imposition of heavy taxes and levies.[2]:4
Mencius (372-289 BCE) favored low taxation of the people and stated that the rulers of the warring states were imposing taxes like brigands.[2]:3–4 His view was that the agricultural tax in place but abolish all other taxes.[2]:3 He particularly criticized market taxes, head taxes, and housing taxes.[2]:3 Mencius believed the ideal tax rate was 10%.[2]:4
After defeating the other six kingdoms, the Qin dynasty maintained the high taxes it had imposed in war time and imposed taxes to fund projects including the Great Wall and the Terracotta Army.[2]:4 Taxes and levies equaled two-thirds of farmers' crops.[2]:4 Discontent with these policies contributed to rebellion and ultimately the defeat of the Qin and establishment of the Han dynasty.[2]:4
During the Han dynasty, Emperor Wu (156-87 BCE) collected min qian (a form of business tax) from merchants, businessmen, and handicraftsmen.[2]:70–71
In 9 CE, Emperor Wang Mang of the Xin dynasty (9 to 23 CE) established the first income tax through a 10% tax of net earnings from wild herb and fruit collection, fishing, shepherding, and various nonagricultural activities and forms of trading.[2]:97 People were obligated to report their taxes to the government and officials would audit these reports.[2]:97 The penalty for evading this tax was one year of hard labor and confiscation of the entirety of a person's property.[2]:97 Because it caused popular discontent, this income tax was abolished in 22 CE.[2]:97
The Tang dynasty (618-907 CE) imposed yashui (a form of business tax) on intermediary agents.[2]:71 It also collected a form of housing property taxes.[2]:383
Yashui was also an important source of local government revenue during the Qing dynasty (1644-1911).[2]:71 The Qing dynasty also collected a form of housing property taxes.[2]:383
In 1853, the Qing introduced another form of business tax called lijin.[2]:71
Personal income tax was implemented in the early 20th century.[2]:98 First, in 1911, the Qing drafted an income tax prospectus.[2]:100 However, the Qing collapsed before collecting any income tax.[2]:100 The Republic of China (ROC) implemented income tax in 1914, but suspended it in 1916.[2]:100 The ROC sought revised income tax regulations in 1928, planned for implementation in 1929, but then put the regulations on hold.[2]:100 The ROC established another income tax system in 1936 and it remained in place (with some revisions) until the ROC's defeat in the Chinese Civil War.[2]:100–101
On 1 January 1931, the ROC replaced lijin with business tax.[2]:71 It collected housing property taxes in the form of a housing contribution (fang juan).[2]:383
A tax is a mandatory financial charge or levy imposed on a taxpayer by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax relief. The first known taxation occurred in Ancient Egypt around 3000–2800 BC. Taxes consist of direct or indirect taxes and may be paid in money or as labor equivalent.
Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. A tax shelter is one type of tax avoidance, and tax havens are jurisdictions that facilitate reduced taxes. Tax avoidance should not be confused with tax evasion, which is illegal. Both tax evasion and tax avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that intend to subvert a state's tax system.
An indirect tax is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of market price of the good or service purchased. Alternatively, if the entity who pays taxes to the tax collecting authority does not suffer a corresponding reduction in income, i.e., the effect and tax incidence are not on the same entity meaning that tax can be shifted or passed on, then the tax is indirect.
Zhoucun district is a district in Zibo, Shandong Province, China. The district covers 307 km2 (119 sq mi) and had an estimated population of 288,440 in 2013. Its main industry is textiles and furniture manufacture. The center of the commercial district has a recently refurbished area with traditional buildings. Some of the filming for Zhang Yimou's film To Live was done in the district.
Tax policy refers to the guidelines and principles established by a government for the imposition and collection of taxes. It encompasses both microeconomic and macroeconomic aspects, with the former focusing on issues of fairness and efficiency in tax collection, and the latter focusing on the overall quantity of taxes to be collected and its impact on economic activity. The tax framework of a country is considered a crucial instrument for influencing the country's economy.
The tax system of the Russian Federation is a complex of relationships between fiscal authorities and taxpayers in the field of all existing taxes and fees. It implies continuous communication of all its members and related objects: payers; legislative framework; oversight authorities; types of mandatory payments. The Russian Tax Code is the primary tax law for the Russian Federation. The Code was created, adopted and implemented in three stages.
Taxation in Iran is levied and collected by the Iranian National Tax Administration under the Ministry of Finance and Economic Affairs of the Government of Iran. In 2008, about 55% of the government's budget came from oil and natural gas revenues, the rest from taxes and fees. An estimated 50% of Iran's GDP was exempt from taxes in FY 2004. There are virtually millions of people who do not pay taxes in Iran and hence operate outside the formal economy. The fiscal year begins on March 21 and ends on March 20 of the next year.
Taxation represents the biggest source of revenues for the Peruvian government. For 2016, the projected amount of taxation revenues was S/.94.6 billion. There are four taxes that make up approximately 90 percent of the taxation revenues:
The Tanzania Revenue Authority (TRA) is the government agency of Tanzania, charged with the responsibility of managing the assessment, collection and accounting of all central government revenue in Tanzania.
Yicheng County is a county in the prefecture-level city of Linfen, in the south of Shanxi Province, China. The county spans an area of 1,168 square kilometres (451 sq mi), and is home to 323,517 people as of 2019.
Taxes in Germany are levied at various government levels: the federal government, the 16 states (Länder), and numerous municipalities (Städte/Gemeinden). The structured tax system has evolved significantly, since the reunification of Germany in 1990 and the integration within the European Union, which has influenced tax policies. Today, income tax and Value-Added Tax (VAT) are the primary sources of tax revenue. These taxes reflect Germany's commitment to a balanced approach between direct and indirect taxation, essential for funding extensive social welfare programs and public infrastructure. The modern German tax system accentuate on fairness and efficiency, adapting to global economic trends and domestic fiscal needs.
Taxes provide an important source of revenue for various levels of the Government of the Republic of China. The tax revenue of Taiwan in 2015 amounted NT$2.1 trillion.
Taxes in Spain are levied by national (central), regional and local governments. Tax revenue in Spain stood at 36.3% of GDP in 2013. A wide range of taxes are levied on different sources, the most important ones being income tax, social security contributions, corporate tax, value added tax; some of them are applied at national level and others at national and regional levels. Most national and regional taxes are collected by the Agencia Estatal de Administración Tributaria which is the bureau responsible for collecting taxes at the national level. Other minor taxes like property transfer tax (regional), real estate property tax (local), road tax (local) are collected directly by regional or local administrations. Four historical territories or foral provinces collect all national and regional taxes themselves and subsequently transfer the portion due to the central Government after two negotiations called Concierto and the Convenio. The tax year in Spain follows the calendar year. The tax collection method depends on the tax; some of them are collected by self-assessment, but others follow a system of pay-as-you-earn tax with monthly withholdings that follow a self-assessment at the end of the term.
Taxation in Estonia consists of state and local taxes. A relatively high proportion of government revenue comes from consumption taxes whilst revenue from capital taxes is one of the lowest in the European Union.
In Slovakia, taxes are levied by the state and local governments. Tax revenue stood at 19.3% of the country's gross domestic product in 2021. The tax-to-GDP ratio in Slovakia deviates from OECD average of 34.0% by 0.8 percent and in 2022 was 34.8% which ranks Slovakia 19th in the tax-to-GDP ratio comparison among the OECD countries. The most important revenue sources for the state government are income tax, social security, value-added tax and corporate tax.
Taxes in Georgia are collected on both national and local levels. The most important taxes are collected on national level, these taxes include an income tax, corporate taxes and value added tax. On local level property taxes as well as various fees are collected. There are 6 flat tax rates in Georgia: corporate profit tax, value added tax, excise tax, personal income tax, import tax and property tax.
Taxation is an important part in the Turkish economy. Turkey has a 41.65% tax to GDP ratio. Most of the taxes are levied by central government. However some specific taxes are levied by municipalities, with the amount determined by centrally issued legislation. Municipalities have no authority to make their own tax laws.
The Chinese government initiated a fiscal and taxation system reform in 1992, prepared and promulgated in 1993, and finally implemented in 1994. The reform was a large-scale adjustment of the tax distribution system and tax structure between the central and local governments, which was regarded as a milestone in the transition of China's fiscal system from planned economy to market economy. The main purpose of the tax-sharing reform is to alleviate the budget deficit since the end of the 1980s. As the reform achieved indeed remarkable results, it yet evoked problems like heavier financial burden of local governments. In order to make ends meet, governments started to let lands which eventually pushed up the land and housing price. Therefore, the tax-sharing reform is considered to be the reason of China's severe land finance.
Tax revenue in Luxembourg was 38.65% of GDP in 2017, which is just above the average OECD in 2017.
Ethiopia has a long history of taxing its population. As of 2002, reforms have changed the way the tax system works in the nation; these reforms have aimed to centralize tax authority. Currently the nation's federal government lobbies many different types of taxes on its population; these taxes include income taxes on four main schedules, property taxes, and value added taxes (VAT).
↑ Leung, Sidney C.M.; Richardson, Grant; Taylor, Grantley. "The effect of the general anti-avoidance rule on corporate tax avoidance in China". Journal of Contemporary Accounting & Economics. 15 (1).
Moser, Michael; Winston K. Zee (1999). China Tax Guide. OUP China. ISBN978-0-19-590610-3.
Gensler, Howard (1998). China Tax and Accounting Manual. Asia Law & Practice. ISBN978-962-936-035-1.
Farah, Paolo Davide (2015-11-24). "China's Role and Contribution in The Global Governance of Climate Change: Institutional Adjustments for Carbon Tax Introduction, Collection and Management in China". Journal of World Energy Law and Business. 8 (6). SSRN2695612.
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