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.

China’s Environmental Protection Tax Law in effect from January 1st, 2018

China’s Environmental Protection Tax Law to reduce pollution levels

This year, China is going to effectively start its battle against environmental pollution. Announced by the State Council, the Implementation Rules for the Environmental Protection Tax Law (EPT Law) and the Law itself took effect on January 1st, 2018. Businesses in China, and prospected market entrants, need to fully understand the Law’s implications and implementation to legally operate in the market without facing high impacts on their finances. In addition, the Law sets new opportunities for foreign companies in environmental protection fields. 

Transfer Pricing Advantages

First of all, what is transfer pricing?
Transfer Pricing is the price to which one headquarter transfers products or services to its associated enterprises located in different countries. Transfer prices are applied to multinational groups to evaluate the performance of their different members (branches and subsidiaries).

The Taxation System in China

The Chinese Taxation System – China Tax Main Table

 Broadly defined as having profit <500,000 RMB/year

2As outlined by the Chinese Government

 

Individuals working in China Mainland are also taxed. The tax is called Individual Income Tax (IIT) and is levied according to 11 different categories of income:

10 steps to open a foreign invested company in China.

10 steps to open a foreign invested company in China.
Opening a foreign invested company in the Chinese market can seem, and can become, over complicated. Normally is advisable to avoid taking this path alone, especially without a good Chinese language proficiency and without network. The business environment for Western-leaded companies is unique, it is more complex and controversial than any other country.

Value Added Tax (VAT) for foreign companies in China

In China, the VAT system is equally applied to foreign and local companies working in the territory. Unfortunately, as foreigners, we don’t enjoy any benefit related to VAT rates. But, with the appropriate support a foreign company might gain some deductions.

Where does the VAT apply? 

VAT for foreign companies in China, as well as for Chinese companies in China, is applied on the sale of goods, repair and/or replacement of services, and on the import of items into China Mainland. Following the VAT reform in 2016, VAT is levied also on:

Income tax brackets in China for employees, self-employees and corporate

As Partner of S.J. Grand Financial & Tax Advisory, in China since the early 90’s, I can recommend gathering all the possible insights on corporate and individual taxation in China. Comply with rules, avoid illegal practices for the both the mother company and branch’s sake.

Here’s a summary of the main taxation levied on companies and employees in China.

Corporate taxation in China includes:

-        Corporate Income Tax (CIT)

How can a foreigner register his company in China?

First, sit down and set your strategy out. Once your strategy is well defined, the decision to invest in China has been taken with the approval of investors, and all human and financial resources have been gathered, you are ready to register your company.

Is China becoming an import market? Further decrease in China Import Tariffs

Further decrease in China Import Tariffs

According to Statista, the value of imports to China has considerably increased over the last 10 years. In May 2017, it reached USD 150 billion confirming China as the third world’s biggest importer. Considering data, maybe the time to steadily export to China has finally come.

 

china-import

Mainland China - New Policies to Regulate Cross-Border E-Commerce Retail Import Business

The Chinese government recently released a new policy through Circular 18 to adjust the tax policies on cross-border e-commerce retail business and imported articles. Cross-border importers must follow new procedures to export and import to Mainland China. Companies in the e-commerce industry have to take into account the newly introduced regulations as it impacts altered cost, operational efficiency, quality of services and compliance risks. What has changed so far?

What is the new procedures e-commerce retailers now have to follow? 

China Individual Income Tax (IIT): Key challenges and considerations for foreign employees and employers

In early 2016, the tax bureaus in China have made the tax compliance requirements for foreign employees and employers stricter. In China, all income related to employment (whether in cash, kind or any form of economic benefits) is subject to tax, except the following fringe benefits to foreign employees:

How to finance your operations in China: Investment or working capital optimization?

Our President, Dr. Grand gives a Seminar at the BCECC in Brussels:

Transition from Business Tax (BT) to Value Added Tax (VAT)

China will roll out the final phase of VAT reform on 1 May 2016

S.J. GRAND - Member of the EU SME Centre in China

S.J. GRAND Financial and Tax Advisory is pleased to inform that we are now a member of the EU SME Centre and referenced in their database as a Service Provider supporting SMEs to grow their business and be successful in China.

S.J. GRAND - Member of the Hong Kong Trade Development Council (HKTDC)

S.J. GRAND Financial and Tax Advisory is very pleased to inform you that we are also a new member of the Hong Kong Trade Development Council (HKTDC). We are referenced in their database as a Service Provider supporting SMEs to grow their business in Hong Kong and thus considered by the HKTDC as a reliable and trustable Bookkeeping & Accounting Service Company in Hong Kong.

Shenzhen: living with your elderly parents to get relief in your income tax

1. Problem of ageing population in Shenzhen:

Shenzhen is currently facing a problem of an ageing society.The number of local citizens above 60 will rise from 250,000 to 400,000 in only five years. By 2020, the population of permanent senior residents above 60 will have increased from 490,000 to 760,000.

2. The authorities’ reform:

Beijing - Shanghai - Shenzhen - Hong Kong - Paris

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