Tax

What subsidies, tax benefits and intellectual property protections can UK companies receive when setting up or expanding their presence in South China? Hawksford and Zhong Lun Law Firm explain Cities in the Greater Bay Area (GBA), which links nine cities in Guangdong with Hong Kong and Macau, already present foreign businesses with subsidies based on the size of their investment and future contribution to the local economy with specific requirements …

Kristina Koehler-Coluccia from Woodburn Accountants & Advisors examines how changes to the Individual Income Tax Law (IIT) will affect earnings for foreign professionals living and working in China  A series of expatriate allowances and tax exemptions that had long been aimed at attracting foreign talent to China will no longer be valid starting 1 January 2022. This will directly impact the taxable income of foreigners working in the region. According …

China supports the G7’s initiative for a Global Minimum Corporate Tax, which it prefers to the EU’s digital service tax proposal – here’s why, writes Torsten Weller. Relations with China figured prominently at June’s G7 summit in Cornwall. Yet despite many media reports highlighting the differences and potential flash points between Western democracies and the Communist Party in Beijing, the meeting addressed several points where both sides are pretty much …

Although tax reform is currently not on the Chinese government’s agenda, growing fiscal pain and rising costs for local governments have increased pressure to design a more sustainable tax system, Torsten Weller writes The publication of China’s 14th Five-Year Plan (FYP) has attracted plenty of international attention, with much of the external commentary on the plan focusing on its emphasis on self-reliance and domestic consumption. One area which has received …

The cost of hiring a British or other foreign national in China is set to grow by as much as 30% by 2022, depending on how the company structures its contracts with foreign workers. Joe Cash explains. Next year’s increased costs of employing foreign workers comes as a result of changes to the Individual Income Tax (IIT) system planned for 2022, in line with amendments to China’s tax code that …

In this six-part business guide to doing business in China produced by Hawksford, we’ll give an overview of what you need to consider before entering the market. Ranging from localisation, to the legal and banking systems, to type of company set up. This series is a great jumping-off point to understand the many nuances of doing business with China. Part 4: Corporate taxes China’s current tax framework was put in …

Chinese Premier Li Keqiang has delivered the government’s annual work report to the 13th National People’s Congress. The report summarises China’s economic performance last year and outlines the key economic targets for 2020.  Unusually, those targets do not include a GDP growth rate goal for China this year. Dropping the GDP target was expected in the wake of the COVID-19 pandemic, which has already caused economic activity to slump in China …

It’s that time of the year when annual audits are due, so make sure your business is aware of the local laws, cultural sensitivities and the challenges of keeping documents in the correct locations, explains Simon Bevan, Head of China-Britain Services Group, Grant Thornton UK LLP International groups are used to the reality that remote businesses – even small ones – often represent a greater risk than the core business …

To support companies’ cashflow, national and regional government departments are offering a range of discounts and tax breaks, explains Fabio Stella of Hawksford Whilst we endeavour to provide accurate and up to date information, companies should liaise with local partners, government departments or CBBC regional offices to get the current take. Rules and policies vary from region to region and change frequently. A more detailed city by city update can …

In a period of transition between tax laws, Chinese taxpayers can decide which tax policy to use for their annual bonus, writes Valur Blomsterberg of accounting firm Integra Group It’s been a year since changes to Individual Income Tax (IIT) came into effect in January 2019, and tax brackets and a host of other changes to the country’s individual taxation system were introduced. Amongst the new provisions was the comprehensive …