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.

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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:

Transition from Business Tax to VAT system in China: New VAT policies for finance leasing services

As part of the transition from the Business Tax to the VAT system in China, the State Administration of Taxation (SAT) has released:

  1. Announcement [2015] No. 90 “Announcement on relevant VAT issues in relation to the transition of business tax to VAT”, and
  2. Caishui [2015] No. 144 (“Circular 144”) on Stamp Duty policies.

Key objective:

R&D super reduction zone – to be implemented on the 1st January 2016

Circular 119 was released on the 21st October. It significantly changes R&D deduction regulation by focusing on pre-additional deductions of R7D expenses. Most local and foreign firms will be positively impacted, expect for those that belong to industrial sectors or that practice activities falling in the scope of the negative list. Foreign firms and multinationals may now wonder on which basis a project will be deemed to meet R&D super deduction requirements.

Pilot QDLP Program in Qingdao – RMB funds invest in overseas markets

The new pilot QDLP Program of Qingdao implemented on February 9, 2015 by local authorities is a significant breakthrough for the Chinese fund industry. Indeed, it enhances financial reforms in the area by promoting wealth management investments. Foreign investors can now establish an investment entity in Qingdao and set up RMB fund firms in order to invest in overseas listed securities and M&A overseas-unlisted securities and commodities markets.

New International Standards for Automatic Exchange of Financial Information

In a joint effort against tax evasion, the Hong Kong government and the Organization for Economic Development and Cooperation (OECD) implemented Common Reporting Standards (CRS) for Foreign Invested Firms (FIEs) in the scope of aligning Hong Kong with the global standards for Automatic Exchange of Financial Information (AEOI). Legislative proposals for implementing those new standards were expressed by the Hong Kong authorities after a public consultation process of FIEs between April and June 2015.

Registered capital and annual inspections no longer required for foreign invested firms

Following the 2014 State Council plan reforming capital registration systems, the Ministry of Commerce (MOFCOM) issued new rules in October 2015. For capital requirements, a “subscribed capital” system will be implemented instead of a “paid in” system. For annual inspections, the procedure will be followed online which abolished the necessity for physical check on an annual basis. Foreign firms and multinationals must therefore assess the key impacts of these new regulations, which will mainly be positive. 

China's 13th Five Year Plan: Development Agenda

Social and economic plans embodied by the new FYP were implemented in China in 1953 and based on the Soviet Union model. They are drafted and implemented nationally and regionally. Today, people wonder whether those plans don’t have an expiry date, just like the Soviet Union’s ones.

China’s Foreign Investment Law towards stability and long-term sustainability

In the next 18 months, the Chinese Foreign Investment Law should be reshaped around three main aspects to further liberalize the Chinese market accordingly to international standards.

Positive prospects for the Chinese economy with the One Belt One Road benefitting the world

With the ongoing acceleration of reforms in China exemplifying the structural transition of the economy, one may wonder what will be the global implications of the One Belt One Road strategy.

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