In China, the distinction between national tax (国税) and local tax (地税) is crucial for understanding how the government manages its finances. National taxes are collected by the State Administration of Taxation and are used to fund central government projects and services that affect the entire country, such as defense and infrastructure. These taxes include value-added tax (VAT), corporate income tax, and individual income tax on salaries exceeding certain thresholds.

On the other hand, local taxes are managed by local tax bureaus and support regional development. Examples include property taxes, stamp duties, and some portions of VAT. Local taxes help maintain public services like education, healthcare, and municipal improvements within provinces or cities.

The division ensures efficient resource allocation while maintaining national unity. While both types serve different purposes, they collectively contribute to China’s economic stability and growth. Each taxpayer should understand which taxes apply to them based on their location and income source. 😊