Other Briefings
Costs of Running a WFOE in China
Sept. 30 – WFOEs are considered resident enterprises in China and, just as other domestic companies, their profits are subject to corporate income tax (CIT), which is generally 25 percent. Businesses generally also pay either business tax (BT) or value-added tax (VAT), depending on the nature of the business. Only in special circumstances are both […]
China Solicits Comments on the New Administrative Measures for Online Commodity Trading
Sept. 20 – China’s State Administration of Industry and Commerce (SAIC) released their draft of the new “Administrative Measures for Online Commodity Trading and Relevant Services (hereinafter referred to as ‘Measures’)” on September 11 to solicit comments from the public. In 2010, the SAIC enacted the “Interim Measures for the Administration of Online Commodity Trading […]
Setting Up a Wholly Foreign-Owned Enterprise (WFOE) in China
Unlike the simpler representative office setup which is subject to a number of limitations, a WFOE can make profits and issue local invoices in RMB to its customers, which is crucial as invoices are the basis for obtaining tax deductions in China. Compared to a joint venture, a WFOE has greater freedom and independence, and can better protect its intellectual properties. It can also employ local staff directly, without obligation to employ services from employment agencies.
Regulations and Restrictions on Foreign Real Estate Property Purchases in China
Sept. 4 – China’s real estate market has seen massive development since it’s opening to private investors in the late 1990s, and in order to rein in sky-rocketing property prices the Chinese government has rolled out various regulations and policies in recent years to keep the market in check. Included in this are regulations aimed […]
China Labor Union Disrupting US$2.5 Billion U.S.-Indo M&A Deal
Indian buyers of U.S. parent “not welcome” as Shandong labor union disrupts China operations Sept. 2 – The increasing number of problematic issues facing foreign investors in China has been brought to the fore once again, this time highlighted by a disgruntled labor union. The Shandong-based Cooper Tires plant, a joint venture with local partner […]
Chengdu Joins Shanghai, Beijing & Guangzhou in Offering 72 Hour Visa-Free Stays to Foreign Travelers
Aug. 23 – Following Beijing, Shanghai and Guangzhou, Chengdu will become the fourth city in China to adopt the 72 hour visa-free stay policy. The policy, which is scheduled to take effect on September 1, will make Chengdu China’s first inland city to offer a 72 hour visa-free stay to transit passengers.
NDRC Punishes Milk Powder Manufacturers for Price Monopoly Violations
Aug. 14 – China’s National Development and Reform Commission (NDRC) announced the punishments for six milk powder manufacturing companies that were charged with price monopoly practices last week. The six manufacturers are expected to forfeit a total of roughly RMB670 million (US$110 million) in fines as part of their punishment. The six companies are: BIOSTIME; […]
China’s E-Commerce Legislative and Regulatory Framework
In 2012, the number of China’s internet users rose by 10 percent to 564 million, and its e-commerce market increased by 66.5 percent to RMB1.3 trillion (US$190 billion) worth of transactions. This article covers the current policy and regulatory framework governing companies involved in China’s e-commerce market, and well as the key taxes affecting the business activities of such enterprises.
