Mainland China Tax
Mainland China adopts a sophisticated tax system, which is now composed of 18 kinds of taxes, including turnover taxes, income taxes, property, environmental tax, behaviour taxes, resources taxes and special purpose taxes. Different tax rates, preferential tax treatments or double taxation reliefs may be applied when certain conditions are met. In general, there is a basic law giving the broad principles of the tax. Detailed implementing regulations and specific rules have been issued by the State Administration of Taxation or other government authorities, which are subject to subsequent updates/revisions from time to time.
China Tax Management
We provide professional assistance to individual and corporate clients to review their tax position, manage tax risks and handle tax compliance, especially for those who are engaged by a Chinese company or who are on secondment to Mainland China, or carry out business in multiple countries/tax jurisdictions.
For example, we help to review and to provide comments on legal contracts from a Chinese tax point of view, identify tax residency and ascertain tax exposure for clients, restructure group organisations to achieve tax efficiency, and handle tax investigations from Chinese tax authorities.
We also issue regular China tax updates regarding new applications of Mainland circulars such as Circular 658 and their tax implications for businesses and individuals to make sure our clients and partners always have their tax positions optimised and compliant.
Having a Business in China
Our sister company Triple Eight Limited can assist with setting up a new business in Mainland China. The New Foreign Investment Law (the “FIL”) was made effective on 1st January 2020. The FIL replaces the three traditional laws namely the Chinese-Foreign Equity Joint Venture Law, the Chinese-Foreign Cooperative Joint Venture Law and the Wholly Foreign Owned Enterprise Law (commonly known as “WFOE”).
The FIL imposes different requirements on corporate formation, foreign ownership ratios, corporate governance and operational management. In particular, the FIL provides that the foreign investment enterprises should follow the People’s Republic of China (“PRC”) Company Law (which applies to domestic companies), the PRC Partnership Enterprise Law and other applicable laws in terms of form, organs and operating procedures.
Our services in Mainland China include but are not limited to:
- Setting up of foreign investment enterprises and representative offices (performing company/limited registration in China)
- Advising on the structure and types of entity
- Providing consultation on doing business
