Tax Forex Customs China Law

China’s rules on taxation, foreign exchange and customs are constantly adjusted to support the government’s broad economic policy goals. Working in China, it is imperative to understand how existing and changing policies will affect your business, and how to structure business activities to be practical and cost-efficient, while minimising your legal risk.

We advise business and individuals on these issues, review their methods for compliance, and when clients become the target of an investigation, we represent them in negotiations with competent departments for taxation, foreign exchange, and customs.

When a case has international (tax) implications, we cooperate with reputable international organisations.

New Criminal Standards Target Illegal Foreign Exchange Traders

One of the challenges for foreign companies to operate in China, is the restriction on foreign exchange, with limitations on why, how and how much foreign currency can be exchanged into Chinese Yuan and vice versa. While this makes China different from many other...

Major Tax Cuts for Smaller Companies in China

In order to support the country’s main job creators, China’s State Council chaired by Premier Li Keqiang on 9 January 2019 announced that the Chinese government will support the development of micro and small enterprises (MSEs) by introducing major tax cuts. The...

IIT Regulations Clarify the Tax Treatment for Expatriates in China

In October 2018, China’s Ministry of Finance proposed the draft changes to the Implementing Regulations of the IIT Law, to become effective by January 2019. In many ways these regulations are more important than the IIT Law itself (see our original article on the IIT...

Reform to Social Insurance System to Impact Foreign Businesses

With the Regulations on the Reform of National Tax and Local Tax (the “Reform”) adopted on 20 July 2018 (to become effective on 1 January 2019), the responsibility to collect social insurance premiums (i.e. for basic pension insurance, basic medical insurance,...

Changes to Individual Income Tax Law Will Impact Companies Operating in China

In June 2018, the Standing Committee of the National People’s Congress proposed major amendments to the PRC Individual Income Tax Law (IIT Law). These changes are expected to take effect in October 2018, with full implementation of the revised law planned for January...