Expatriate Employees and Global Taxation
Posted by Eric Lin on September 9, 2020
Eric Lin
As Chinese companies expand their businesses globally, expatriate employees’ individual income taxes become more critical for the employees themselves, and Chinese-owned foreign subsidiaries. Here are some important considerations under the Chinese IIT Rules.
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The New Foreign Investment Law
Posted by Nina Wang on July 16, 2019
In response to international criticism about China’s openness to foreign businesses and an attempt to attract more foreign investors to expand their businesses to China, the National People’s Congress passed the Foreign Investment Law of the People’s Republic of China (Foreign Investment Law) on March 15 2019, which will come into force on January 1, 2020.
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How to Respond to the US-China Trade Friction
Posted by Nina Wang and Tim Hilligoss on January 29, 2019
The year of 2018 was essential to the world’s two greatest trading nations: the United States and China. Throughout 2018, the Trump administration proposed and launched a series of policies imposing additional duty rates on a wide range of products imported from China. China retaliated immediately by publishing a list of products imported from US as targets for an additional 25% tariff. This trade friction is sweeping worldwide and has significant impacts on businesses.
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Impacts of the New China IIT Law
Posted by Nina Wang on January 28, 2019
On August 31, 2018, China passed the Draft Amendment to the Individual Income Tax Law (IIT Law), which is the most significant revamp in the past 38 years. The amendments will have a significant impact on foreigners living in China. The following is an overview of the key changes that may affect individuals in the global mobility arena.
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China Released Tax-Reduction Measures
Posted by Nina Wang on January 10, 2019
In the past few months, China’s Ministry of Finance (MOF), State Administration of Taxation (SAT), and other governmental agencies released various new “Circulars” to the current Chinese corporate tax law. Most of these tax reduction measures took effect January 1, 2018 in order to support entrepreneurship, innovation, and the development of both high technology enterprises and small and mid-sized entities (SMEs).
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China’s Reduced VAT (Value Added Tax) Rates
Posted by Nina Wang on August 28, 2018
Value Added Tax rates in China have been lowered, which is expected to save businesses 240 billion yuan a year.
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Our China Practice
Posted by Robert Dutkiewicz on June 11, 2018
I am pleased to share the accomplishments from our China service team, from how they serve our clients to providing up-to-date information on the accounting, tax, and business needs of the China market.
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Permanent Establishment in China
Posted by Tim Hilligoss and Nina Wang on March 13, 2018
In many cases, the owners of such foreign entities are not aware of PE concepts and as a result, the entities are subject to Chinese CIT liability.
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High and New Technology Reform in China
Posted by Nina Wang on September 12, 2017
On January 29, 2016, the Chinese tax authority announced the amended administrative approval measures (Guokefahuo, 2016-32) for High and New Technology Enterprises (HNTE) to …
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Five Questions Answered about Expat Individual Income Tax in China
Posted by Nina Wang and Timothy Hilligoss on July 25, 2017
As a direct result of globalization, there is an increasing amount of foreigners working in China. It’s important for a foreign person to know …
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Clayton & McKervey Unveils New Mandarin Web Site
Posted by Clayton & McKervey on January 24, 2017
Clayton & McKervey, an international accounting and business advisory firm servicing growth-driven middle-market companies, introduced a new Mandarin web site on January 13, 2017. Created …
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Proving Beneficial Ownership to China Requires Right Approach
Posted by Sarah Russell on February 1, 2013
Foreign investors in China who want to obtain tax treaty benefits for withholding taxes on dividends need to understand the concept of beneficial ownership, communicate …
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New Rules for Representative Offices of Foreign Enterprises in China
Posted by Tim Hilligoss on July 30, 2010
In view of the stricter administration of ROs, the limited business scope, and the increased tax costs brought about, foreign investors may need to revisit …
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Chinese Business Tax Regulations
Posted by Tim Hilligoss on September 30, 2009
The new Business Tax (“BT”) regulations took effect on January 1, 2009. The new tax significantly increases the tax liability for foreign service providers that …
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China Compliance and Record Filing Requirements
Posted by Tim Hilligoss on May 31, 2009
First, if a non-tax resident enterprise derives passive income, namely interest, dividend, rental, royalties, and capital gains, etc. from China, the payer of the income …
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