Our collection of resources based on what we have learned on the ground
Resources
Q&A
Under what other conditions would parties be considered as related parties?
- January 2014
- Members Access
If one of the following scenarios is met, then parties shall be considered as related parties: • When one enterprise’s production and operation activities are dependent on intangibles licensed from another enterprise (including indu...
Q&A
What aspect should be cautioned when using holding companies for Chinese or ASEA...
- January 2014
- Free Access
It must be noted that compliance with anti-avoidance tax rules from Hong Kong and Singapore is a must. The key to such compliance is to show that the holding company is a genuine business, i.e.: there must be economic substance to justify this tax...
Q&A
What are the tax incentives for Hong Kong and Singapore holding companies?
- January 2014
- Members Access
Since both Hong Kong and Singapore have double taxations agreements with China and ASEAN countries, the withholding tax rate for profit repatriation to these two locations would normally be reduced. An instance would be that the Chinese withholding t...
Q&A
Why are Hong Kong and Singapore holding companies attractive to foreign investor...
- January 2014
- Free Access
In terms of ease of doing business, both locations take the stance of protecting investors and facilitating cross-border trade, by providing highly transparent business environment and favorable tax regime to businesses. Also, with English being the ...
Q&A
How many different development zones are there in China?
- November 2013
- Free Access
Although many tax benefits have been dried up after the 2008 Corporate Tax Reform, it is all the more important to understand which development zone will fit best with your business and your demands. Here is the list of development zones in China: ...
Q&A
How do China?s general anti-avoidance rules work?
- November 2013
- Free Access
A general anti-avoidance rule (GAAR) was first introduced in China under the corporate income tax (CIT) Law which came into effect in 2008. The GAAR empowers Chinese tax authorities to make reasonable adjustments where an enterprise implements an arr...
Q&A
What is a wholly foreign-owned enterprise in China?
- November 2013
- Free Access
It is a company established in China according to Chinese laws and is wholly owned by one or more foreign investors. WFOE is of limited liability, i.e.: shareholders will only be liable for the amount of shares that they have subscribed to. The laws ...
Q&A
How many types of wholly foreign-owned enterprises (WFOEs) are allowed by law in...
- November 2013
- Free Access
There are three types that are currently allowed: Service (or consulting) WFOE; Trading WFOE (or Foreign-Invested Commercial Enterprise – FICE); and Manufacturing WFOE Despite having the same legal identity, they have significan...
Q&A
What are the sector restrictions for wholly foreign-owned enterprises under Chin...
- November 2013
- Free Access
According to Guidance Catalogue for Foreign Investment (2012 Catalogue), which is jointly published by the National Development and Reform Commission and Ministry of Commerce, sector restriction applies to the business activities that the Wholly Fore...
Q&A
What criteria must be met by foreign investors to set up a trading company in Ch...
- March 2013
- Free Access
The foreign investor should meet the following criteria: Has a good reputation Has not committed any acts in violation of Chinese laws, administrative rules or regulations Can meet the required ratio between registered capital and total investme...
Q&A
What is ASEAN?s potential?
- January 2013
- Free Access
ASEAN represents a market of around 600 million people, with a combined GDP of around US$1.8 trillion. The OECD (Organization for Economic Cooperation & Development) has projected growth within ASEAN to be about 6% per year for the period 2011-15...
Q&A
What requirements are in place to be eligible for tax incentive in Western regio...
- December 2012
- Free Access
From January 1, 2011 to December 31, 2020, enterprises can enjoy a reduced corporate income tax at a rate of 15 percent, upon fulfilling the below criteria and being approved by the relevant tax office: Based in the western region (including, but ...
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