The Dezan Shira & Associates equity partners have been holding their annual partners meetings in Sri Lanka these past few days, focusing on their planning, strategy, and budgeting sessions for the year ahead. The firm is one of the largest consulting practices in Asia, providing legal, tax, and related advice to foreign SMEs and MNCs investing in China, India, and Southeast Asia. With the Dezan Shira Asian Alliance, the practice includes some 28 offices across 10 countries and about 600 staff.
The practice was founded in Hong Kong and Shenzhen, China in 1992, and was one of the earliest professional services firms in the China market. In China, its offices now include offices in Beijing, Dalian, Dongguan, Guangzhou, Hangzhou, Ningbo, Qingdao, Shanghai, Suzhou, Tianjin, and Zhongshan. The practice has also been operating in India since 2005, Vietnam since 2006, and Singapore since 2007, with additional full service alliance offices in Indonesia, Malaysia, the Philippines, and Thailand. The firm is unique both due to its size, private ownership, and the fact that it is one of the few remaining professional services firms to have retained its independence, and remains self-financed and managed. Next year is the 25th anniversary of the practice.
“We have enjoyed a productive and profitable 2016 under difficult trading conditions” comments Chris Devonshire-Ellis, the Founding Partner and Chairman, “and we have an aggressive 2017 plan to develop our business interests in India and the China-India and China-ASEAN trade corridors in particular. We are also branching out into the Silk Road arena and will be launching Silk Road Briefing as an investment intelligence platform dealing with China’s ODI into the One Belt One Road project at the end of Q1 next year, as well as boosting our marketing presence in the United States and EU during 2017. We continue to expand further into Asia including Central Asia, and are one of the very few firms who have the capability to offer pan-Asian, multi-jurisdictional services.”
Dezan Shira is also well known for its wholly owned publishing and regional intelligence division, Asia Briefing, which includes China Briefing, as well as similar platforms for ASEAN, India, Indonesia, Russia, and Vietnam.
“We continue to enjoy running and developing the practice” says Devonshire-Ellis “and are looking forward to our 25th anniversary next year and further adventures to come.”
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
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China Investment Roadmap: the Food & Beverage Industry
In this edition of China Briefing, we examine two areas of Chinese food regulations most pertinent for foreign investors today – licensing and certification, and food safety standards. Both have undergone significant change in recent years, altering the way in which foreign companies must engage with the food & beverage industry, and must be thoroughly understood prior to market entry.
An Introduction to Foreign Investment in Indonesia
Indonesia stands out in the ASEAN region for its competitive wages, large labor pool, and burgeoning domestic market. With a population exceeding 250 million, the country is poised to become an immensely lucrative market as it develops further and the urban consumption class continues to grow. In this inaugural issue of Indonesia Briefing magazine, we examine these trends, and highlight how Indonesia has made enormous strides in streamlining and liberalizing its business environment in order to capture larger inflows of foreign direct investment (FDI).
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China industrial profit growth sees rise in October
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By Dezan Shira & Associates
Editor: Ari Chernoff
Editor’s note: This article was originally published on May 17, 2012, and has been updated to include the latest regulatory changes.
On November 1, 2016, China’s State Administration of Foreign Experts Affairs (SAFEA) launched the new unified work permit in select regions across the country. The limited release targets the regions of Beijing, Shanghai, Tianjin, Anhui, Guangdong, Hebei, Shandong, Sichuan, and Ningxia, as the government seeks to gauge the program’s success before the nationwide rollout on April 1, 2017.
China’s previous foreign work permits, the Alien Employment Permit (Z-visa) and the Foreign Expert Permit (R-visa), have been integrated into the Permit System for Foreigners in China, a single work permit based on a three-tiered classification system. The permit provides a federal model administered by SAFEA, eliminating the often troublesome and inconsistent regionally administered policies.
By Dezan Shira & Associates
Editor: Jake Liddle
As the end of the financial year looms, key considerations in respect of annual audit should be made by multinational entities (MNEs) operating in China. On June 29, 2016, China’s State Administration of Taxation (SAT) issued a notice regarding reporting of related party transactions and administration of transfer pricing documentation (SAT public notice  No. 42), hereby referred to as ‘Notice 42’, which was overviewed in our previous article. It updates and provides new transfer pricing requirements and special tax revisions previously provided in Guo Shui Fa  No. 114 and Guo Shui Fa  No.2, sections of which have been replaced or annulled. Notably, it details on annual reporting forms for related party transactions (RPT forms), which this article explores in depth.
With the new dynamics of a Trump-era Presidency upon us, the world’s Western media focus has been very much on the implications of this change of executive on global trade. However, American influence over global trade is becoming increasingly Spartan as the country concentrates on established orders at the expense of ignoring the new. With both Washington and Brussels focusing too much on the might of their respective economies, nuances and influence over what is developing elsewhere are being lost. While the US still soars away from its rivals as the world’s largest economy, an emerging picture tells of an Asia that is fast catching up with American and European fiscal might.
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On November 15, 2016, the Ministry of Commerce (MOFCOM) announced that the transition period for cross-border e-commerce would be extended to late 2017 in order to facilitate the introduction of the new regulatory model for such activities. Originally, the State Council approved that from May 11, 2016, a one year period would be provided for the transition to the full implementation of the cross-border e-commerce pilot program on all retail imports, which is currently applicable to bonded goods purchased online entering China via Shanghai, Tianjin, Hangzhou, Ningbo, Zhengzhou, Guangzhou, Shenzhen, Chongqing, Fuzhou, and Pingtan. Customs declaration forms for items entering these ports will temporarily not be checked, and requirements on first import licenses, registration, or archival filing will also be temporarily suspended for cosmetics, infant formula, medical instruments, special food (including dietary supplements and special formula food for medical use).
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Hong Kong entered into a Double Taxation Arrangement (DTA) with China in 2006. The treaty acts as a way to avoid double taxation and clamp down on tax evasion, improving ties between both jurisdictions by reinforcing their respective tax laws, encouraging competition, and promoting investment. A fourth protocol was signed on April 1, 2015, amending four key aspects of the DTA. One of those aspects was a tax exemption for capital gains derived by foreign investors that sell shares of a China-based company, which was looked at in part one of this case study. Part two of the case study will approach issues that Company A should be aware of when applying for a capital gains tax exemption, and how to calculate the capital gain tax of restricted shares.