Environmental Analysis of Shanghai (China)
| | | |
| |Type of Government: |Stability of Government: |
| | | |
| |Communist party |Relatively high |
| | | |
| |Dominant rule of single party: |Powerful central government that|
|Characteristics |i.e. central policy guidance |majorly regulates the market |
| | | |
| |Chinese Communism-‘’new |High level of protection for the |
|Meaning |Capitalism’’? |domestic businesses from the |
| |Vertical relationship |government |
Environmental analysis of Shanghai (China)
Political and Legal Factors:
Government analysis:
Taxation
Foreign companies that wish to invest in China are responsible for following tax payments:
❖ Income Tax (3% local income tax; 30% income tax rate= 33%)
❖ Business Tax : 3%
❖ Property Tax: annual rate of 1.2 % after 20 % is deducted.
Tax year is a calendar year but there is a possibility for foreign company to adapt it to its own fiscal year.
Advantage:
❖ Foreign companies that are based in the area of Shanghai or Pudong airport pay reduced tax rate of 15 %.
❖ According to china regulations in case a foreign company that isn’t
| |Type of Government: |Stability of Government: |
| | | |
| |Communist party |Relatively high |
| | | |
| |Dominant rule of single party: |Powerful central government that|
|Characteristics |i.e. central policy guidance |majorly regulates the market |
| | | |
| |Chinese Communism-‘’new |High level of protection for the |
|Meaning |Capitalism’’? |domestic businesses from the |
| |Vertical relationship |government |
Environmental analysis of Shanghai (China)
Political and Legal Factors:
Government analysis:
Taxation
Foreign companies that wish to invest in China are responsible for following tax payments:
❖ Income Tax (3% local income tax; 30% income tax rate= 33%)
❖ Business Tax : 3%
❖ Property Tax: annual rate of 1.2 % after 20 % is deducted.
Tax year is a calendar year but there is a possibility for foreign company to adapt it to its own fiscal year.
Advantage:
❖ Foreign companies that are based in the area of Shanghai or Pudong airport pay reduced tax rate of 15 %.
❖ According to china regulations in case a foreign company that isn’t