Our collection of resources based on what we have learned on the ground
Resources
Q&A
How are fixed assets defined in annual compliance for foreign-invested entities ...
- January 2014
- Free Access
Fixed assets include, but are not limited to, the following items: Houses, buildings and structures; Machinery and mechanical apparatus; Means of transport and other such equipment to the same effect; Appliances and tools...
Q&A
What aspects should foreign-invested enterprises (FIEs) pay attention to in tax ...
- January 2014
- Free Access
All foreign-invested enterprises should pay attention to the following: The FIEs should submit the Annual Taxation Consolidation Reporting Package, which is authorized by the CPA firms, to the tax bureau by the end of May each year. The FIEs shou...
Q&A
What are counted as deductible expenses for foreign-invested entities under Chin...
- January 2014
- Members Access
The following items count as deductible expenses for foreign-invested entities in China: Advertising and business promotion expenses – they are deductible up to 15 percent of the sales income of that year; Business entertainmen...
Q&A
How are asset losses defined in China for annual compliance purposes and how sho...
- January 2014
- Free Access
Asset losses include the following items: Monetary assets loss – i.e.: losses of cash, bank, account receivables, prepayments; Non-monetary assets loss – i.e.: losses of inventory, fixed assets intangible assets construction in proces...
Q&A
How should withholding obligations be discharged for annual compliance in China?
- January 2014
- Members Access
When expenses are incurred for services rendered by foreigners in China, withholding obligations will arise, and such obligations shall be so arisen on an accrual basis. When such obligation arises, as of current legislations, 10 percent withh...
Q&A
What are non-deductible expenses in China for annual compliance purposes?
- January 2014
- Free Access
The following items are not deductible under Chinese laws for annual compliance: Management fees paid between enterprises; Rental and royalty fees paid between business units; Interest paid between business units of a non-bank enterprise; Provi...
Q&A
What are the liabilities that are specifically applicable to legal representativ...
- January 2014
- Free Access
The liabilities specifically applicable to legal representatives are found generally in: General Principles of the Civil Law of the People’s Republic of China; 2007 Enterprise Bankruptcy law; and Regulations of the PRC Concerning the Admin...
Q&A
What are the duties that are applicable to shareholders in a foreign-invested en...
- January 2014
- Free Access
The shareholders are those who contribute capital to the company. For a wholly-foreign owned enterprise, shareholders are the supreme authority. The shareholders have the power to exercise such functions and powers, as below: Decide on the operati...
Q&A
What are the liabilities that are applicable to senior officials of a foreign-in...
- January 2014
- Free Access
The liabilities are divided into three different categories: Liability for criminal offenses Liability for liquidation Liability to the company Liability for criminal offenses will arise when a breach of company is so sev...
Q&A
How are internal control and internal audit defined in China?
- January 2014
- Free Access
Internal control is a process designated to provide assurance that the company is: Effectively and efficiently operating; Providing reliable financial reporting; Complying with applicable laws and regulations; and Safegua...
Q&A
How to find a permanent establishment for the foreign headquarter?
- January 2014
- Free Access
Under most double tax treaties between China and other countries, a permanent establishment will be constituted if: The Chinese entity receives services from foreign entities, be the service rendered in China or overseas; and The duration of the ...
Q&A
How is related parties defined in terms of management under Chinese law?
- January 2014
- Members Access
Related parties are found on the basis that, when the either of the following is appointed by another enterprise, or two enterprises with more than half of their senior management personnel or more than one executive director is appointed by a sam...
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