Taxes and duties in China
In April of 2016, in response to a US claim filed with the WTO, China eliminated a program provided known as the “Demonstration Bases-Common Services Platform” which served as an alleged subsidy for benefiting six seafood demonstration bases exporting 20% of the total seafood export sector (2012).
Relevant taxes for the seafood industry in China are:
- Value-added tax (VAT): VAT applies to the sales of goods and services within China. The standard rate is 17% with some necessities at 13%.
- Corporate tax: the standard corporate income tax (CIT) is 25%.
- Vehicle and vessel tax: fixed annual tax
- Personal income tax: progressive individual income tax rates varies from 3% to 45%
- Property tax: for owners – 1.2% of original value with a deduction; or for renters, 12%
- Customs duty: duties are imposed and based on the CIF (cost, insurance and freight) value. The rate of duty varies by type of seafood product and country of origin. (PwC Hong Kong)
Beginning in 2017, China will cut tariffs on imports of certain seafood products. Specific species impacted are arctic shrimp (from 5% to 2%), cod (from 10% to 5%), tuna (from 12% to 6%), flatfish (12% to 2%), hairtail (from 10% to 5%), lobster and geoduck from (15% to 10%). In addition to benefiting Chinese seafood consumers, Canada, Russia and the United States will also benefit as exporting nations (SeafoodSource, December 2016)