Our collection of resources based on what we have learned on the ground
Resources
Q&A
What are the basic requirements for setting up a cross- boarder cash pool in the...
- February 2015
- Free Access
• All companies involved must have positive equity. • The participating company must be part of the same parent company (i.e., cannot be in a Sino-foreign JV). If the overseas company has multiple subsidiaries in China, only one may be id...
Q&A
How do you establish a cash pool in the Shanghai FTZ?
- February 2015
- Free Access
The procedure for establishing a cash pool differs between RMB and foreign exchange denominated transfers. In both cases, the participating enterprise must sign a contract with a bank in China stipulating the terms of the inter-company loan and descr...
Q&A
How should foreign investors adapt when setting up a wholly foreign owned enterp...
- February 2015
- Free Access
Foreign investors need to adapt their presence to serve China’s domestic consumer market. To engage in distribution, an existing manufacturing wholly foreign-owned enterprise (WFOE) will need to expand its business scope. Adding distribution in...
Q&A
What are China's regulations on granting Double Taxation Avoidance?
- February 2015
- Free Access
Before it will grant DTA (Double Taxation Avoidance) relief from Withholding Tax on dividends, interest or royalties, the SAT (State Administration on Taxation) must be satisfied that the applicant company in a DTA partner jurisdiction is indeed the ...
Q&A
When is withholding tax charged in China?
- February 2015
- Free Access
Withholding Tax (WT) is charged on an array of service fees billed by a company in its home jurisdiction to a company (either a client or subsidiary) in China for services provided by the former to the latter. As corporate income tax (CIT) cannot be ...
Q&A
What are the different types of distribution which wholly foreign owned enterpri...
- February 2015
- Free Access
The different types of distribution which can be carried out by WFOEs in China are as follows: Retailing: i.e., selling goods from fixed venues or via television, telephone, mail order, internet, or vending machines, and related services.&nb...
Q&A
Why is the significance of permanent establishment in DTAs?
- February 2015
- Free Access
Permanent establishment (PE) – defined as a fixed place at which the business of an enterprise is carried out in a given country. If a non-resident enterprise (in terms of China) is a tax resident of a jurisdiction that has a DTA in place with ...
Q&A
What is the main objective for the revised Environmental Protection Laws and how...
- February 2015
- Free Access
Overall, the revised law emphasizes the principles of transparency, accountability, rule of law, and public participation in environmental monitoring. These make it inevitable that the costs of doing business in China for foreign-invested enterprises...
Q&A
What is the methods of applying for DTA benefits in China?
- February 2015
- Free Access
For foreign investors doing business in China, securing DTA benefits is an important measure for reducing the tax burden as stipulated by Chinese tax law and thereby maximizing profit. In addition to satisfying the specific requirements of the releva...
Q&A
How are individuals taxed in Hong Kong, and who must file annual tax returns in ...
- February 2015
- Free Access
Individuals are taxed at a progressive rates on their net chargeable income (i.e assessable income after deductions and allowances) starting at 2% and ending at 17% or at a standard rate of 15% on net income (i.e. income after deductions), depending ...
Q&A
How have the wages for Chinese people developed in China and what are the prospe...
- February 2015
- Free Access
In recent years, the Chinese government has been pushing for pay increases to retain public support and boost domestic consumption. Wages have also risen as millions of Chinese move from the countryside into the cities, and as employers struggle to f...
Q&A
What is the Shanghai FTZ Negative list and why was it revised?
- February 2015
- Free Access
The Negative List is an innovative approach to foreign investment adopted exclusively in the Shanghai FTZ, under which foreign investors enjoy equal treatment as Chinese domestic enterprises in any industry not explicitly restricted or prohibited on ...
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