Our collection of resources based on what we have learned on the ground
Resources
Q&A
What is 'hukou'?
- October 2012
- Free Access
A hukou stipulates an employee’s home city/country and can either be a rural hukou or an urban hukou, with the social insurance system applying only the latter.
Q&A
What services are provided by foreign enterprise services company besides payrol...
- October 2012
- Free Access
Some FESCOs carry out other services such as executive search work (headhunting) on behalf of their clients, which could create a conflict of interest between payroll clients (who supply confidential personal and salary information) and headhunting c...
Q&A
What does the Labor Contract Law stipulate about workers dispatched from foreign...
- October 2012
- Free Access
In the past, this directive has often been ignored and foreign enterprise services companies have been used to hire a wide variety of Chinese workers upon the client’s request. However, recent draft legislation regarding the obligation of emplo...
Q&A
What are the advantages and disadvantages of foreign enterprise services compani...
- October 2012
- Free Access
The advantages of using foreign enterprise services companies are: lower risk than direct hiring hiring assistance during process of incorporation mandatory benefit payments in other cities The disadvantages thereof are: conflict of intere...
Q&A
What are the different requirements for claiming treaty benefits in China?
- September 2012
- Members Access
The requirements for claiming treaty benefits in china differ on the base of the type of income: benefits from passive income must receive approval (which takes 20-50 days and is valid for three calendar years), while benefits from active income shou...
Q&A
What are the four categories that summarize the legal framework in regards to th...
- September 2012
- Free Access
The development of double taxation agreements for China investment by summarizing the legal framework are in four categories: Anti-avoidance foundations Qualifying as beneficial owner Claiming treaty benefits Reporting offshore transactions
Q&A
How do China?s anti-avoidance foundations affect taxes?
- September 2012
- Free Access
China’s general anti-avoidance rules (GAAR) were first introduced under the 2008 Corporate Income Tax (CIT) Law which provides that, where an enterprise’s taxable income is reduced due to its implementation of “arrangements that do ...
Q&A
What is the most common difficulty for Hong Kong clients when applying to avail ...
- September 2012
- Members Access
The most common difficulty for our clients in Hong Kong when applying to avail of treaty benefits under DTAs between China and other countries is to obtain the tax resident certificate for their Hong Kong entity, especially when the Hong Kong en...
Q&A
Have the Double Taxation Avoidance Agreements (DTA) become more stringent and sp...
- September 2012
- Free Access
Beginning in 2010, stronger, more specific regulations began to come into effect, and companies began to have to apply for relief under DTAs; for example, in order to qualify for DTA relief from withholding tax on dividends, interest and royalties, t...
Q&A
What is a permanent establishment (PE)?
- September 2012
- Free Access
A permanent establishment (PE) can be a place of management, a branch, an office, a factory, etc. or certain activities, such as a building site or construction project or rendering of consultancy services that last over a specified time (stipulated ...
Q&A
What types of categories are tax treaties divided into?
- September 2012
- Members Access
The United Nations Conference on Trade and Development divides tax treaties into categories based on their applicability, primarily on their income, income and capita, protocol and transportation (air, water, or both).
Q&A
What happens when investors are subject to two different tax systems?
- September 2012
- Members Access
Confusion about international taxation can arise when investors are subject to two different and potentially conflicting tax systems. For example, Hong Kong and Singapore adopt a “territorial source” principle of taxation, which means tha...
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