SHANGHAI – Order No. 55, disseminated by China’s State Council in 1990 (“Order 55”), allows foreign investors to acquire land-use rights for business operations. However, China employs highly rigid rules and administrative control over the grant or transfer of land-use rights, and any change of the title or purpose of the land-use rights requires legal procedures to be carried out with government authorities. The Ministry of Land and Resources (MLR) and its local Land and Resource Bureaus (LRB) oversees land use registration and alterations. Nevertheless, all individuals or entities must utilize the land strictly in compliance with the general plan of land usage formulated by the state and local government. Continue reading
Since 1999, China Briefing has been the premium source for quality, in-depth and detailed technical and professional reading on matters of China Law and Tax. Listed below are our most current and most popular magazine titles dealing with an array of technical issues.
These magazines are available free during the initial month of publication, and then archived and available for a fee. The free downloads can be obtained via a complimentary subscription. To subscribe to China Briefing and receive our weekly business news roundup free, plus your complimentary copy of China Briefing Magazine, discounts on our other publications and selected events, please click here.
All foreign-invested enterprises (FIEs) in China are required to carry out annual compliance procedures as mandated by various governmental departments. It is crucial to be aware of the relevant deadlines as failure to carry out these procedures on time may result in extra expenses, penalties, or even revocation of business licenses. Tax compliance is especially important because an FIE can only repatriate profits to foreign investors after the Chinese tax bureaus are satisfied that all applicable taxes have been paid up. While tedious, this process is a good opportunity for companies to conduct an internal financial health check and to optimize tax efficiency, financial structure and processes, as well as internal control mechanisms for fraud prevention.
In this article, we outline the steps for completing the annual compliance requirements in China. Continue reading
Knowledge of China’s DTAs is a vital part of structuring foreign investment into the country
Op-Ed Commentary: Chris Devonshire-Ellis
China has taken an assertive view when it comes to entering into Double Tax Agreements (DTA) with other nations – it now has 99 such treaties, many of them recent. This compares with the United States, who has 67 such treaties (including with China), but of which many are seriously out of date and written prior to the contemporary internet age. As a result, many of the American treaties are insufficient when it comes to dealing with IT and communications. China’s DTAs tend to be rather more sophisticated by virtue of them being more contemporary. China’s leadership, in effect, have been far more savvy than their American counterparts when it comes to positioning the country as tax friendly in the IT, software and communications industries – curious given that the U.S. is a major innovator in this exact same arena. Continue reading
By Roy McCall
So you would like to invest in China’s film industry? Does the competitive landscape offer opportunities to the strategic investor? Here’s a view of the China film value chain:
SHANGHAI – To register a foreign-invested enterprise (FIE) or a representative office (RO) in China, it is a prerequisite to own or lease an office premise (as the place of business). The State Administration of Industry and Commerce (AIC) requires proof of a place of business for the registration of all FIEs. As such, the FIE must possess all legal documents pertaining to the premise as required by the Chinese government.
Although the Administrative Regulations on Company Registration promulgated by the State Council in 2005 stipulates that the AIC is in charge of the business registration of foreign invested companies, in reality, most business registrations have been delegated for processing at the local AIC level. Continue reading
February speaking engagements across the United States, Germany, China and ASEAN
The accounting, tax and legal staff from Dezan Shira & Associates are regularly invited to attend and speak at international events concerning matters of foreign investment in China, India, Vietnam, Singapore and ASEAN. Please see details below concerning events taking place in February accompanied by the pertinent subject matter and contact details if you’d like to attend or meet one of our professionals.
To reach out concerning events or to book a complimentary one-on-one session with our staff at any of the events and locations below, please contact: firstname.lastname@example.org. For further information regarding upcoming events in 2014 that Dezan Shira staff will be attending, please see here.
By Angela Ma, Associate, Dezan Shira & Associates
BEIJING – The taxes involved in import to China include import duties, value-added tax (VAT), and possibly consumption tax (CT) if the product being imported falls under CT specified categories. For foreign trading companies engaged in the business of selling (or import) to China, it is wise to be fully clear about the relevant tax issues before rushing into signing any sales contracts, because the amount of import taxes and who would be ultimately liable for those taxes largely depends on how the sales contract is concluded between the foreign seller and the Chinese buyer.
International Commercial Terms (a.k.a. Incoterms) published by the International Chamber of Commerce (ICC) are widely used in international commercial transactions to help communicate the costs and risk-bearing associated with the transportation and delivery of goods. “CIF” (Cost, Insurance, and Freight) and “FOB” (Free On Board) are probably the most common price terms that have been adopted by international trading companies when signing a contract. “CIF” implies that the seller would be responsible for the freight and insurance to bring the goods to the port of destination; the buyer pays for the freight and insurance if a “FOB” pricing is agreed upon. Continue reading