By Xu Zhijun
As outlined in our article on the Tianjin Free Trade Zone, the Chinese government is focused on making Tianjin the country’s center for financial leasing. The city already had a strong background in financial leasing prior to the opening of its Free Trade Zone. In 2012, the State Administration of Taxation (SAT) launched a pilot program to refund VAT on exported goods under financial lease in the Tianjin Dongjiang Bonded Port zone. After trialing the program for two years, the Ministry of Finance decided to expand the policy nationwide, effective October 2014.
The policy applies to foreign-invested financial leasing companies approved by the Ministry of Commerce (MOFCOM); locally funded financial leasing companies approved by both MOFCOM and SAT; and financial leasing companies approved by a provincial branch of MOFCOM that are located in National Economic and Technological Development Zones. Continue reading…
By Kimberly Wright
In April, three new Free Trade Zones (FTZs) were officially implemented in Tianjin, Guangdong and Fujian, joining Shanghai to bring the total number of FTZs in China up to four. As a growing hub for manufacturing and shipping, Tianjin’s new FTZ has the potential to transform the landscape for development and foreign investment practices in Northern China.
Tianjin, a municipal-level city located a mere 40-minute train ride from Beijing, has witnessed significant economic growth in recent years. Tianjin’s GDP increased 10 percent in 2014 to reach 250 billion USD (RMB 1.572 trillion) and it is predicted to soon surpass Hong Kong in economic output. It has the biggest port in Northern China and development zones like the Binhai New Area and the Tianjin Economic-Development Area (TEDA) have positioned the city as an attractive site for investment. Major industries include manufacturing, pharmaceuticals, metallurgy and shipping. A total number of 139 Fortune 500 multinational companies made investment in the Binhai New Area in 2014, with a value of exports and imports at US$93.83 billion.
By Steven Elsinga and Rainy Yao
While the key points of China’s maternity leave are legislated at the national level, a significant part of the system is regulated at the local level, as is common with many matters concerning human resources and social security. All across China, the base length of maternity leave is 98 days. If a woman gives birth to more than one child at the same time, she gets an additional 15 days off per child.
The main regional differences concern maternity leave for difficult childbirth, miscarriage, and what the Chinese government has termed ‘late childbirth’. Continue reading…
China Announces New Public Holiday on September 3
On May 13, the Chinese government announced an additional national holiday on September 3 to celebrate the 70th anniversary of the Allies’ victory over Japan. As is customary with Chinese holidays, the additional days that employees have off will be compensated by having to work on the weekend. September 3 and 4 (Thursday and Friday) will be holidays, but Sunday will be a working day. China’s full 2015 holiday schedule can be found here.
China Clarifies Rules on Salaries and Benefits to be Deducted before Tax
On May 8, the State Administration of Taxation (SAT) released a circular to clarify corporate income tax (CIT) settlement in and after the year 2014. The circular states that employee’s benefits, salaries and monthly allowances should be allocated to the category of “enterprise’s expenditure for salaries and wages” and are allowed to be deducted before tax.
The newest issue of China Briefing Magazine, titled “China Investment Roadmap: The Automotive Parts Industry,” is out now and available as a complimentary download in the Asia Briefing Bookstore through the month of June.
- A Look under the Hood: Overview of China’s Auto Parts Industry
- Gearing Up: Investing in China’s Automotive Parts Industry
- Expert Commentary: Opportunities in New Energy Vehicles
These are exciting times for the automotive industry in China. The country recently overtook the United States to become the world’s largest car market and shows no signs of slowing down. As more and more Chinese enter the middle class, their demands for mobility increases. As a result, car use in China has exploded. Continue reading…
If Texas were a country, it would have the 14th largest economy in the world. With a GDP of US$1.414 trillion, the Lone Star state would be vying with South Korea to be ranked 13th, leaving Spain and neighboring Mexico at a respectable distance.
Texas has been the American state with the highest volume of exports for 13 consecutive years. Again in 2014, Texas led American exports, totaling US$289 billion. The state boasts 16 sea ports, three of which rank in the country’s top ten busiest. As part of the Gulf Intracoastal Waterway that runs from Brownsville, Texas, to St. Marks, Florida, the state covers 67 percent of the U.S. waterborne traffic.
By Dezan Shira & Associates
Legal Editor: Steven Elsinga
When setting up a company in China, one inevitably incurs costs prior to the company being formally incorporated. The question then arises what part of these costs may be deducted from the company’s tax bill. This becomes especially relevant if the investment is a large project, such as setting up a factory and purchasing machinery, where the costs incurred prior to incorporation can be substantial. Continue reading…
Op/Ed by Chris Devonshire-Ellis
With Indian Prime Minister Modi visiting China from May 14 for a couple of days, much remains on the agenda between the two Asian giants. International media might concentrate on border disputes, although these really have only been a relatively recent development. China may now appear rather more flexible in attempting to settle these differences than has previously been the case. The reason for this has everything to do with China’s own demographic developments.