Our collection of resources based on what we have learned on the ground
Resources
Q&A
What methods do China’s State Administration of Taxation and Ministry of Finan...
- February 2016
- Members Access
China’s consumption tax can be applied to a wide range of products ranging from high energy products like cars, to those deemed luxury items and nonessentials. As a result, consumption tax rates vary considerably. Once the tax rate ...
Q&A
What is a fapiao?
- February 2016
- Members Access
A fapiao is the Chinese name for value-added tax (VAT) invoices that are administered by the tax authorities to monitor the tax paid on transactions. Businesses are required to purchase fapiaos based on the sales revenue they believe that they ...
Q&A
What is a parcel tax?
- February 2016
- Members Access
A parcel tax is a tax levied on products sold by foreign exporters to Chinese consumers that amount to, or exceed RMB 50. The tax also applies to imported goods bought online on cross border e-commerce platforms. The parcel tax rate split...
Q&A
What is the significance of China’s resource tax reform that was produced by t...
- February 2016
- Members Access
The resource tax reform aims to promote the conservation of China’s domestically produced natural resources such as coal and natural gas. The government-issued reform dictates that the tax rates on these resources will be based on local s...
Q&A
What factors must an overseas parent company consider when translating the finan...
- February 2016
- Members Access
Translating financial reports between an international parent company and a Chinese subsidiary can often be a fairly complex task. Each company is required to follow specific accounting standards based on the country that they reside in. ...
Q&A
What is the significance of the Foreign Account Tax Compliance Act (FATCA) for A...
- February 2016
- Members Access
The Foreign Account Tax Compliance Act (FATCA) is specifically designed to counter tax evasion. In cooperation with the Chinese government, financial institutions based in China are required by law to present the US government with information ...
Q&A
Why would an employee choose restricted stock units (RSUs) over monetary bonuses...
- February 2016
- Members Access
Restricted stock units (RSUs) are convenient forms of compensation that offer an array of benefits to employees seeking long-term employment with a company. This form of company stock is disbursed to an employee based on level of performance an...
Q&A
What was the first FTZ established in China?
- January 2016
- Free Access
China’s first ever free-trade zone was established in Shanghai in September 2013. This FTZ was created to serve as a means to promote economic reform and facilitate foreign direct investment.
Q&A
What is meant by the term ‘negative list’?
- January 2016
- Free Access
The term negative list is used to define industries in which foreign companies cannot invest and specifies restrictions or bans on certain types of foreign investment. This term was first introduced in the Shanghai FTZ in 2013 and has been updated tw...
Q&A
What are the goals of China's three new FTZs?
- January 2016
- Free Access
The three new zones are intended to drive regional growth by encouraging selected industries to cluster in that area. It could be said that the biggest opportunity for foreign investors is the concentration of industries and the benefits that th...
Q&A
What are “one-stop application processing platforms” used in FTZs?
- January 2016
- Free Access
One-stop application processing platforms were introduced to cut down on bureaucracy related time costs for company establishment. Under this platform all application materials will be submitted and handled through the industry and commerce authority...
Q&A
How is the labor arbitration process in China?
- December 2015
- Free Access
The labor arbitration process in China consists of four phases. First, the employer and employee are encouraged to sort out the matter on their own out of court. Should this fail, both parties might seek to mediate through the help of the Labor...
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