Our collection of resources based on what we have learned on the ground
Resources
Q&A
What are the required documents representative offices (ROs) need to provide to ...
- May 2014
- Free Access
ROs are required to complete an AIC annual inspection between March 1 and June 30. Generally the following documents should be provided: Annual inspection report (the template will be distributed by AIC around March) Business registration certifi...
Q&A
What are the penalties if a representative office (RO) fails to provide its repo...
- May 2014
- Members Access
Penalties of RMB 10,000 to RMB 30,000 are applicable if the RO fails to provide its report to the AIC on time, and a RMB 20,000 to RMB 200,000 penalty applies if the report includes false information. Failure to comply may also lead to revocation of ...
Q&A
Do representative offices (ROs) need to complete a tax reconciliation report of ...
- May 2014
- Free Access
ROs are obliged to complete a tax reconciliation report of CIT as part of their annual compliance. The report should be submitted to its local tax bureau by May 31. Usually an audit report is not required for ROs paying CIT based on a deemed profit s...
Q&A
Why is successful audit & compliance crucial to a foreign-invested entity?s (FIE...
- May 2014
- Members Access
External audit is crucial to FIEs because it provides more accurate financial information, and a review through an outsider’s eye can more effectively dig out flaws in the company’s internal control and financial data. It is also a goo...
Q&A
Which R&D expenses are deductible from a company?s taxable income in China?
- May 2014
- Members Access
The following R&D expenses are deductible from a company’s taxable income in China: Basic pension, basic medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing funds contributed by the e...
Q&A
What is the corporate income tax (CIT) treatment on cross-border secondment of e...
- May 2014
- Members Access
When a non-resident enterprise (NRE) dispatches personnel to China to provide services, and the NRE normally examines and assesses the performance of the dispatched personnel, and is wholly or partially responsible for their performance, the NRE will...
Q&A
What is an example of a mixed investment in China?
- May 2014
- Free Access
An example of mixed investments is when a trust company collects money from institutional investors and individuals, and provides loans and investments to various projects in exchange for the investees’ equity shares. The trust company usually ...
Q&A
When was the value-added tax (VAT) reform implemented in China?
- May 2014
- Free Access
On August 1, 2013, the VAT pilot reform was implemented nationwide, as formalized by the promulgation of the Notice Concerning the Nationwide Adoption of VAT in lieu of Business Tax Pilot Tax Collection Policy in the Transportation Industry and Ce...
Q&A
What does the Consumer Rights Protection Law of March 2014 entail?
- May 2014
- Free Access
The new Consumer Rights Protection Law provides more protection for consumers. Previously, consumers had the burden of proof to show the defects of the products or services purchased. The new law shifts the burden of proof from the consumer to the se...
Q&A
What are the amendments in Chinese Company Law introduced in March 2014?
- May 2014
- Members Access
In October 2013, China’s State Council decided to ease company registration requirements by lowering registered capital requirements, reducing costs of incorporation, and loosening registration principles. In the following month, the State Admi...
Q&A
Do female employees get paid maternity leave in China?
- May 2014
- Free Access
The Special Provisions on Labor Protection of Female Workers promulgated by the Chinese State Council on April 28, 2012, state that a pregnant female employee should be given 98 days of maternity leave, of which 15 days can be taken prior to givin...
Q&A
What are the regulations regarding unemployment insurance in China?
- May 2014
- Free Access
Employers should contribute 2 percent of the total salary paid to its employees to the unemployment insurance fund, while employees should pay 1 percent of their own wages to the fund. The Unemployment Insurance Regulations provide that the amount o...
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