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China-India-USA Tax System Comparison

I need help understanding the basic similarities and differences between the China, India and USA tax system. I understand much of the USAs tax system and history but have little knowledge of India's system and no knowledge of China's system.

I've heard India has a tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. This sounds similiar to USA.

I've heard India's Personal Income Tax system is progressive ( like USA) with four tax brackets as follows:

Individual income tax brackets 0%, 10%, 20%, 30% for annual incomes upto Rs 50,000, 50,000 - 60,000, 60,000 - 1,50,000 and above 1,50,000 respectively.

Corporate Income Tax, Ive heard is as follows:

For domestic companies, this is levied @ 35% plus surcharge of 5%, where as for a foreign company (including branch/project offices), it is @ 40% plus surcharge of 5%. An Indian registered company, which is a subsidiary of a foreign company, is also considered an Indian company for this purpose.

I have zero understanding of the China system.

Can anyone compare and contrast the similiarities or differences for me?

Has anyone seen any research papers on this topic?

Tags: china, india, tax, usa

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Replies to This Discussion

Permalink Reply by Bill M Wright on March 30, 2010 at 1:43pm

Doesn't appear we have members with India & China tax knowledge. I uploaded this India Tax Guide (more for businesses) that was sent to me from India connections. I was also able to verify that India's personal federal tax system is based upon the four tier rate system I was given above. But the Rs income values must be adjusted annually for inflation as th India Embassy in Wash DC advised me this is the 2009 Year levels:

Personal Income tax

Personal income tax is levied by Central Government and is administered by Central Board of Direct taxes under Ministry of Finance in accordance with the provisions of the Income Tax Act. The rates for personal income tax are as follows:

Income range (Rupee) Tax Rate (%)

0-100,000 Nil
1,00,000-1,50,000 10%
1,50,000-2,50,000 20%
2,50,000 and above 30%

Surcharges of 10% on total tax is levied if income exceeds Rs. 8,50,000

I found this link too. I also verified that like the USA thier are State and Local taxes.

Does anyone know anything about China's Government Tax System for 1) Individuals and 2) Businesses ????

Attachments:

India Tax Guide 2009.pdf, 150 KB

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Permalink Reply by Dave Mullin on April 6, 2010 at 5:27pm: http://www.doingbusiness.org/taxes

If you toggle around it's got a lot of information about many countries; ▶ Reply to This

Permalink Reply by Dave Mullin on April 6, 2010 at 5:37pm: http://www.pwccn.com/home/eng/taxlibrary_chinatax.html
http://www.pwc.com/in/en/publications/index.jhtml

Here is quite a bit on China and India from a PricewaterhouseCoopers. Both India and China have been undergoing constant reforms that will be continuing into 2010 and 2011.

Good Luck.; ▶ Reply to This

Permalink Reply by Bill M Wright on April 8, 2010 at 12:12am

Thank You, Dave. Lots of great tax information from PriceWaterhouseCoopers website. I also found this World Tax 2010 Report informative. I'll upload it should someone else have an interest. I found China's monthly tax filing for foreign contractors vs. the USA annual requirement most interesting.

Attachments:

Paying-Taxes-2010.pdf, 790 KB

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Permalink Reply by Jay O'Conner on April 29, 2010 at 2:08am: Yes Please, I have a keen interest in that additional information as soon as possible. And thanks for posing the question. To you both great info, which saves time which is money. Cheers!; ▶ Reply to This

Permalink Reply by Werner Reisacher on May 7, 2010 at 11:03am: I thought this URL might be of interest to some of you.

http://chinataxinsights.com/tag/taxation-of-branch-offices/; ▶ Reply to This

Permalink Reply by Bill M Wright on May 8, 2010 at 1:01pm: Thanks Werner! The China Tax Guide Section is very educational. I'm still studying the guide section.; ▶ Reply to This

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