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China 2021 Q3 Overview - Indicators have slowed but growth remains

On Monday the 18th of October, the quarterly economic data for the third quarter of 2021 was published by the Chinese government. Despite the GDP growing 4.9% from the same point last year, it did not meet the expected growth of 5.2% predicted by analysts.

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Social Security Exemptions for Foreign Individuals in China

Under a tax treaty to which the People’s Republic of China (PRC) is a contracting party, PRC tax residents and foreign tax residents may be able to benefit from foreign tax relief and exemption or a reduction in tax in the PRC. Social security agreements, also known as totalization agreements, have the purpose of avoiding double taxation income with respect to social security taxes. In other words, the totalization agreements eliminate dual Social Security taxation when a worker from one country works in another country and is required to pay Social Security taxes in both countries on the same earnings.

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China's 2021 Free Trade Zones Update – Updated Policies and Guidelines

The People’s Republic of China levies a wide range of taxes including income related taxes such as Corporate Income Tax (CIT) and Individual Income Tax (IIT). As part of China’s increasing efforts to attract Foreign Direct Investment and technology, special economic zones or Free Trade Zones are intended to function as areas of rapid economic growth by using tax and relevant business incentives.

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Do Foreigners in Shanghai need to contribute to Social Security?

China’s social security system is a complicated but unavoidable requirement that can confuse many foreign-invested companies and their employees. With China frequently updating its labor laws and regulations, detailed attention to the labor and employment laws is crucial for staying compliant and operating your business in China.

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China Q2 and H1 Overview – Steady and Sound Growth Momentum Consolidated

On the 15th of July 2021, the Chinese government published the economic data for the second quarter of 2021. When comparing the results to Q1 2021 the economic performance appears to have slowed at first sight, however, a closer look shows that the economy’s performance in Q2 was in fact improved compared to the first quarter of the year.

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10 Steps to set up a Foreign Invested Company in China

Foreign companies that wish to do business in China, can set up a foreign invested company to enter the Chinese market. The establishment of a Foreign Invested Entity in China is subject to various laws, regulations and governmental authorities. Therefore, to provide a good understanding of all steps that are required to set up a fully operational entity in China, we provide a 10-step overview below on the corporate establishment procedures.

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Compliance in China for Foreign Companies

A primary objective for foreign companies in China to manage compliance is to maintain control over their Chinese operations and prevent any negative impact which may arise from non-compliance. To achieve this objective, foreign-invested enterprises with Chinese operations should develop a thorough understanding of Chinese legislation. A thorough understanding of Chinese compliance requirements will not only minimize risks but helps to foster trust between consumers and businesses. Particularly in light of China’s ongoing efforts to implement the Corporate Social Credit System, compliance is more important than ever.

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Establishing A Company in China: A Comparison of China Company Structures

When foreign investors are considering establishing a company in China, deciding on the right market entry vehicle or in other words deciding on the company structure to start operations in China is crucial to understand. The appropriate mode of entry when setting up a legal presence in China depends on multiple parameters, with the intended business activities and industry in China in which a foreign investors wishes to operate being the most important considerations.

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The Electronic Business License

All enterprises operating in Mainland China should be officially registered and have a business license. The license is the official proof of incorporation of the company and therefore companies must present the license when handling official company affairs, such as applying for corporate structural changes or other operational procedures with the authorities, tax bureau or the bank.

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China’s Corporate Income Tax

China's Corporate Income Tax (CIT) is generally applicable to all companies in China or those with business activities in China. A sound understanding of China’s Corporate Income Tax framework is essential to ensure full compliance in China. As such, this article discusses all key characteristics of China’s CIT framework, including the classification of taxpayers in China, the CIT calculation method, applicable CIT deductions and exemptions, applicable CIT in China and preferential CIT rates and withholding CIT rates.

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CHINA 2021 Q1 – CONTINUED GROWTH IN ECONOMIC INDICATORS

On the 16th of April 2021, the Chinese government published the quarterly economic data for the first quarter of 2021. Even though the results seem remarkable, the figures are misleading due to significant downturn experienced in Q1 2020. However, when comparing to the first quarter of 2019 and to the previous quarters, the economy shows continued growth after the downturn experienced in the first half of 2020.

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Individual Income Tax (IIT) Preferential Tax Treatment for Foreigners: the End of Expatriate Allowances in China?

According to China’s existing Individual Income Tax (IIT) law, which came into effect on 1 January 2019, expatriates in China can continue to claim these tax-exempt expatriate allowances until the end of the transition period, ending 31 December 2021.