By Dezan Shira & Associates
Editor: Rainy Yao
Starting April 1, 2015, China has implemented an updated and improved Value-added Tax (VAT) Invoice Management System, which substantially simplifies procedures for issuing the special “red-letter” VAT invoices and allows taxpayers to issue special VAT invoices directly through the invoice management system. In China, taxpayers are required to use a unique printer that is approved by the tax authorities to issue special VAT invoices through the so-called Anti-forgery Tax Control System – a tax software that is implemented by the tax bureau. A special red-letter VAT invoice, meaning the reversal of sales, needs to be issued when the output VAT entered into the Anti-forgery Tax Control System by a seller is negative.
In this article, we introduce China’s updated VAT invoices management system and walk investors through the procedure for handling the issuance of special red-letter VAT invoices in China.
By Jake Liddle
On September 21, a dialogue took place between the UK’s Chancellor of the Exchequer George Osborne and China’s Vice-Premier Ma Kai, concluding in a positive agreement to continue strengthening bilateral relations. Ahead of President Xi Jinping’s planned state visit to the UK later this year – which will be the first state visit of a Chinese president in ten years – Osborne’s visit to China was an effort to encourage the two countries’ strong diplomatic ties, with the Chancellor saying he would like the UK to be “China’s best partner in the West”.
The UK and China have enjoyed a cooperative and friendly relationship which has seen significant increases in trade and business over the years. According to the HM Treasury’s overview of the dialogue, in 2014, China was the UK’s sixth largest goods export market, up from 14th in 2003, and in 2013, the UK attracted close to US$12 billion of Chinese foreign direct investment.
Though the third smallest state in the U.S., Connecticut has the country’s highest per capita income. Connecticut’s GDP came to nearly US$253 billion in 2014, and derives most of its wealth from the finance and insurance sectors.
Imports, exports and major industries
Manufacturing is Connecticut’s largest industry after finance and insurance. Electronics and computers also feature heavily in the state’s exports, making it a popular producer for China’s technology driven market. In 2014, China was Connecticut’s firth largest export market, with exports totaling US$880 million. The top exports are as follows:
By Steven Elsinga
As any visitor to the country is quick to notice, China is a land of foodies. It is common practice in China to knowingly prepare or order too much food for friends and guests. Food is intentionally wasted as a way for hosts to signal that they will not let their guests go hungry. So much food is being wasted, in fact, that the government has launched a campaign to discourage the practice.
And for good reason. With 22 percent of the world’s population, China only holds 10 percent of the planet’s arable land. Measures from the Chinese government to combat the issue range from buying up arable land abroad to researching new agriculture techniques. A key question is how to grow more food with less land. This is where crop seeds come into play.
Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia
In this edition of China Outbound, we take a closer look at the economic initiatives and programs introduced by ASEAN nations and India. We begin by introducing India’s major economic projects “Make in India” and “Digital India,” which serve as a magnet for foreign investment in India. And then discuss the policy package implemented in Indonesia and the Philippines, aiming at boosting free trade. Finally, we talk about the strengthened economic ties between India and Vietnam during new period of bilateral cooperation.
By Dezan Shira & Associates
Editor: Felicia Romain
On September 22, Chinese foreign minister Wang Yi and Prime Minister Li Keqiang met with Iranian foreign minister Javad Zarif in Beijing. The meeting aimed to further bilateral ties between Iran and China. During the visit, both Iran and China predicted a successful future for Iran-China relations, especially with the current nuclear deal – the Joint Comprehensive Plan of Action (JCPOA) – underway.
Through the years, China and Iran have continued to foster an extensive diplomatic relationship. Today, China is the biggest customer of Iranian oil and the first in line for Iranian overseas business. Thus, with the progression of the Joint Comprehensive Plan of Action, strengthening bilateral ties between Iran and China looks inevitable.
By Chris Devonshire-Ellis
The United States has said it has ‘secured’ commitments from China concerning the governance of the Asian Infrastructure Investment Bank (AIIB ). The Beijing led bank has attracted nearly 60 investing nations, including all members of the Association of Southeast Asian Nations (ASEAN) and half of the EU. The United States has declined to participate.
The Chinese commitment, made during President Xi’s visit to Washington, has stated that it would “abide by the highest international environmental and governance standards.”
By Dezan Shira & Associates
Editor: Jake Liddle
Since China’s new Enterprise Income Tax Law took effect in January 2008, the country’s national and provincial governments have implemented a series of tax incentives for new high tech enterprises (NHTEs). A hugely profitable industry in China, proactively applying for the different subsidies, tax exemptions and government funding schemes can significantly reduce a high tech company’s tax burden and improve its market position.