Tax

Repatriating profits from China can be complex but there are a number of options, writes Valur Blomsterberg of accountancy Integra Group China has long maintained strict foreign exchange controls over funds entering and leaving the country, which means that foreign investors face a series of compliance challenges before they can move funds out of the country. With the current pace of regulatory changes and with banks adopting various anti-money laundering …

Valur Blomsterberg of accountancy Integra Group explains the various ways of repatriating profits from China in the most efficient and economical way China has long maintained strict foreign exchange controls over funds entering and leaving the country, which means that foreign investors face a series of compliance challenges before they can move funds out of the country. With the current pace of regulatory changes and with banks adopting various anti-money …

In recent years, China has been implementing significant nationwide tax reform, making changes that even the most responsible businesses may struggle to keep up with. As reported recently, stronger enforcement of existing compliance requirements and restructuring government bodies the government aims to reduce fraud and improve statutory oversight. It seems to be working. Already the Chinese government has reduced value-added tax across a range of industries thanks to the additional …

A raft of tax reforms has made it easier for China’s micro- and small-sized companies, writes Lily Li In January, China’s State Council, chaired by Premier Li Keqiang, announced support for the country’s main job creators, micro- and small-sized enterprises (MSEs), in the form of tax cuts to both Value Added Tax (VAT) and Corporate Income Tax (CIT). MSEs are defined as businesses with less than RMB three million in …

As a foreigner in China, are you paying more tax since 2019 under new tax law asks Lily Li of Axel Standard News of recent changes to Individual Income Tax (IIT) for foreigners in China spread like wildfire over WeChat and other social networks. Numerous amendments regarding the “five-year rule” fueled uncertainty as foreigners were left wondering whether the rule would remain or not. Effective January 1st, 2019, the five-year …

Some problems business’ face are not easily traced back to the accounting methodology, writes Lily Li Fapiao accounting refers to recognising revenue and costs solely based on available fapiaos (the official receipts that are issued and received for goods or services in China). Accountants do not conduct bookkeeping until they issue output fapiaos or receive input fapiaos – and from there, they generate the required financial statements and calculate a …

Fapiao accounting could be limiting your business growth, writes Valur Blomsterberg In China, fapiaos (the official receipts that are issued and received for goods or services provided) are the most important document for tax reporting. They are the gold standard for a business’s taxable income – and for this reason, many accountants do their bookkeeping based solely on fapiaos. This method of accounting does not require the accountant to do …

Professor Jane Duckett, Edward Caird Chair of Politics at the University of Glasgow, and Director of the Scottish Centre for China Research explains how, and why, China is aiming to improve its social services sector During the 21st century, measures to reduce poverty whilst improving healthcare, pensions and social services (including education and housing) have all moved up the policy agenda of the Chinese state. The Chinese Communist Party has …