tax

WFOE set-up in the Shanghai Pilot Free Trade Zone

Wholly Foreign-Owned Enterprise (WFOE) is, by far, the favorite entity for foreign investors looking to set up a company in China. Representative Offices may offer cheap and easy way to feel Chinese trends, Joint-Ventures may give you a privileged access to the market, but WFOE are the only way for a foreign investor to have full control on its operations in China. And where else than in Shanghai would you set up a WFOE? Since the launch of the Shanghai Pilot Free Trade Zone (SHPFTZ) last September, new opportunities for foreign investors are arising in the city.

Representative Office Incorporation in China

Representative Offices (RO) are the cheapest, fastest and easiest way to incorporate in China, compared to WFOE and JV. However, such advantages come with several weak points you should be aware of before choosing to set up an RO. Let’s have a closer look at their characteristics:

S.J. Grand joins PrimeGlobal

As one of the leading business consulting firms in China, S.J.Grand is proud to announce that it has been accredited for becoming a member of PrimeGlobal, an association of independent accounting firms that ranks amongst the 5 largest professional associations in the world. PrimeGlobals’s more than 320 member companies from 87 countries share the same faith in excellence and dedication towards the satisfaction of their client’s needs.

How to avoid the Cash Trap?

Strategies to repatriating profit from China in 2014

SHANGHAI VAT PILOT PROGRAM

  • From 1 January 2012 qualified businesses in Shanghai will be required to charge VAT following approval by the local tax bureau;
  • Input VAT is creditable both for qualified pilot participants and their customers;
  • Generally, the program follows existing VAT mechanisms;
  • Two new VAT rates will be introduced, 6% and 11%, adding to the existing rates of 13% and 17%;
  • Treatment of exports is yet to be determined but likely 0% or tax exempt;
  • The first VAT return is due on 15 February 2012;

China to introduce tax on rare earth resources

--New resource tax to come into effect April 1st--

The State Administration of Taxation and Ministry of Finance issued a joint statement this week to announce China will begin taxation on rare earth minerals beginning next month.
The new tax will be levied at 60 RMB per ton for light rare earth minerals, and 30 RMB per ton for heavy rare earth minerals.

State Council tightens fapiao rules

--Reforms clarify use of fapiao seal--

China’s State Council has issued new regulations on the management of fapiao.

Previously, companies could issue a fapiao by chopping the receipt with either their financial seal (财务专用章) or their fapiao seal (发票专用章). The new regulations stipulate that from Feb 1st only a fapiao seal (发票专用章) will be recognized as creating a valid fapiao.

PRC extends tax break for small business

--Government hopes to stimulate growth of smaller enterprises--

This week, the Chinese government announced it will continue a temporary relief measure designed to ease the tax burden of small businesses. According to the policy, small businesses are only required to pay half their normal income tax if the total annual amount due RMB 30,000 or lower.

The policy was first implemented from January 1st 2010 in an effort to create a better financing and growth environment for small businesses following the global economic crisis.

‘Big Four’ audit dominance could pose dangers

-- UK Employment Minister stresses need for diversity -- 

The market dominance of Big Four audit firms is set to be challenged by a new multi-month enquiry in the UK’s House of Lords, reports Accountancy Age. The enquiry will examine ways to expand choices for companies looking for tax and audit services, and comes amid fears that the Big Four’s overwhelming control of market share could pose a risk to the economy.

Representative Offices: Understanding New Regulations

TAX BRIEF -- JANUARY 2011

IMPORTANT NOTE: New regulations come into force from March 1st that could require you to change your business structure. If you operate a Representative Office, contact S.J. Grand for an obligation free appraisal of your situation.

Beijing - Shanghai - Shenzhen - Hong Kong - Paris
Syndicate content

Copyright © 2009-2017 S.J.Grand. All rights reserved.