China Business News

S.J.Grand offers quality research, case studies and essential updates on the latest China tax and business issues through our news feed, periodic newsletters and our online resource library.

Please feel free to browse, to search using the tags below or contact an S.J. Grand office if you would like to know more about a particular topic that interests you.

More VAT reform: Expanding to Telecom Sector

A new addition to the value added tax "VAT" reform will be added that is likely to take force on the first of April, 2014. The current reform wraps up different kinds of services ranging from 0% till 17% that relies on the service sector in which the company is placed.

Stephane Grand discusses the EU-China 2020 Strategic Agenda with the European Commission

Stephane Grand, Managing Partner of S.J. Grand, was invited on Monday 10th of March to the European Commission to discuss the implementation of the EU-China 2020 Strategic Agenda. He gave a briefing to directors and high-level officials of DG Markt, DG Trade, and the Secretariat General of the European Commission in preparation of the arrival of Xi Jinping and his meeting with European Council Head Herman Van Rompuy and European Commission Chief Jose Manuel Barroso. Dr.

Stephane Grand's interview with BFM, the leading information radio in France about China's anti-corruption campaign

Stephane Grand was interviewed by BFM, the leading information radio in France, for their show Chine Hebdo.  Stephane was asked to comment on the recent anti-corruption campaign launched by the Chinese government, fraud and the launch of OBKsecure, S.J.Grand’s workflow, payroll and accounting online solution.  The interview can be downloaded in French at http://www.bfmtv.com/grille/bfmbusiness/podcast-radio/25502/

China’s Company Law Amendment to Ease Business Set Up Process

New amendments have been agreed upon by the Standing Committee of National People’s Congress on the 28th of December and have taken force on the 1st of March 2014. The new amendment is said to ease the strict requirements and of the capital contributions as well as to encourage entrepreneurs to establish their own companies. This leads to improving growth of the individual economic sector.

Due diligence in China: Why is it better for foreign companies to outsource?

Roadblocks that foreign investors are challenged with

Language barrier

The Chinese language has always been an obstacle for many foreigners who want to do business in China. The majority of the foreign investors do not speak Chinese and few Chinese people speak English. Foreigners ought to depend on translators and still there is a great risk of misunderstandings.  

Complex legislations

FOREIGN INVESTED ENTERPRISES CLAIMING ZERO-RATED VAT CONCESSIONS FOR EXPORT SERVICES

The Value-Added Tax (VAT) pilot program was released in Shanghai in January 2012 and since then this program has been expanded to many parts of China and recently, in August 2013, the program has been launched nationwide. After the release of VAT pilot program, Circular 131 ((caishui [2011] No. 131) was issued which set out two categories of concessions for export services:

CHINA-SWITZERLAND: THE NEW DOUBLE TAXATION AGREEMENT

Recently China and Switzerland re-negotiated the double taxation agreement that has been in existence since 1990 and signed a new double taxation agreement “DTA”. The new agreement still has to go through referendum in Switzerland so its enforceability is still uncertain. However, if everything goes as planned, it’s expected to become effective some time next year.

Celebration of the 10th Anniversary of SJ Grand in Beijing

On October 16, 2013, our SJ Grand team celebrated the 10th anniversary of SJ Grand Financial and Tax Advisory as well as the launch of it's cloud-based accounting and payroll solution, OBKsecure. This event offered an outstanding opportunity to say "thank you" to our clients, business partners and friends for their loyalty and support.

INCREASED ENFORCEMENT AND CONTROL FOR VISAS IN CHINA

In an effort to decrease the amount of illegal foreign workers working in China and to promote China’s openness to “foreign talents”, China had decided to impose stricter visa regulations and make the visa categories more specific.

NATIONWIDE IMPLEMENTATION OF FOREX REFORMS UNDER SERVICE TRADE STARTING SEP 01, 2013

Recently, the State Administration of Foreign Exchange (“SAFE”) issued guidelines concerning foreign exchange administration under service trade and implementation regulations under circular 30 [Huifa 2013]. The new reforms will be implemented throughout China commencing 01 September, 2013.

CHINA AND SWITZERLAND'S FINALIZED FREE TRADE AGREEMENT

On July 6, 2013 representatives from China and Switzerland signed a free trade agreement intended to reduce the customs duty rates between the two nations. The signing of this treaty follows the FTA signed by Hong Kong and Switzerland (which came into effect early 2013). This is the first FTA that China has signed with an economy in mainland Europe and it is anticipated that it will signify to the rest of Europe that China is open to similar deals.

Long Term Benefits

TAX TREATMENT OF CROSS-BORDER SECONDMENTS

The International Department of State Administration of Taxation (“SAT”) has released a new SAT announcement, Announcement No.19. The announcement clarifies when the secondment of an employee by a non-resident company will give rise to a taxable presence (also known as establishment) in China. The announcement became effective on June 1, 2013. This announcement is an expansion of Circular 75 released in 2010 providing further clarification on the Permanent Establishment (“PE”) risk associated with certain secondment arrangements.

VAT PILOT PROGRAM EXPANDING NATIONWIDE- MORE SECTORS TO BE ADDED

The VAT pilot program is set to be launched throughout China starting 01 Aug, 2013. The countrywide reform will include more industries under the pilot scope such as film, radio and television industries and indicate further expansion to railways, post and telecommunications industries in the near future.

The VAT (Value-Added Tax) pilot reform program:

Australia-China trade - Peter Grogan

 

Australia-China trade remains strong despite gloomy global outlook

Chinese interest in investing in Australia remains strong, as does Australian interest in entering the China market.

Our discussions with Chinese companies confirm an ongoing interest in investing in Australian resources, agricultural and real estate assets. These are consistent with the experience of other advisers, Austcham (the Australia-China Chamber of Commerce in Beijing) and media reports.

Beijing to join Shanghai in VAT Pilot Scheme

Chinese state media is citing unnamed sources in the Beijing office of the State Administration of Taxation (SAT) and Beijing Local Taxation Bureau reporting Beijing will be the next region approved to join the VAT reform pilot program that is now underway in Shanghai.

Beijing - Shanghai - Shenzhen - Hong Kong - Paris

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