Other Briefings
New IIT systems for expatriates come online in Shenzhen
By Eugenia Wu/Dezan Shira & Associates SHENZHEN, Sept.28 -The Shenzhen tax bureau has changed its IIT declaration systems for companies with high payments. The two new systems – IIT withholding and Yi Cai Shui (easy tax) – came into effect in July, 2007. The Yi Cai Shui system transmits data from IIT withholding to the […]
IIT rules for expatriates in Hangzhou change
By Helen Ye/Dezan Shira & Associates HANGZHOU, Sept. 26 – We have been seeing a lot of variations locally on how the individual income tax (IIT) regime has been administered for expatriates, and Hangzhou, just west of Shanghai, is a perfect example of this. Previously in Hangzhou, it was permissible to have an agent, not […]
Tax inspection on offices premises in Shanghai
Earlier this year, a new policy of conducting an on-sight tax inspection for any new representative office (RO) or wholly foreign owned enterprise (WFOE) has come into practice in Shanghai. Under this current practice, the tax inspection on the office premises will have to be conducted before tax registration can begin. Because the tax officer […]
Overseas bourses now allowed representative offices on mainland
Aug. 31 – As the China Securities Regulatory Commission announced earlier this year, foreign stock exchanges are now able set up representative offices to promote their organizations and conduct research on the mainland. The Measures for the Administration of Foreign Stock Exchanges’ Representative Office in China, which came into effect July 1, permits overseas bourses […]
VAT refunds for FICEs stall in Hangzhou
By Andy Scott HANGZHOU, Aug. 24 – Foreign invested commercial enterprises best look elsewhere when considering a place to set up, at least that is the consensus we are getting from Hangzhou, where the authorities are making it very difficult for FICEs to receive their VAT refunds on exported goods. Since June 2004, China has […]
Sarbanes-Oxley: Five years on
By Andy Scott Aug. 2 – Monday was the fifth anniversary of the signing of the Sarbanes Oxley Act, a law that has had a huge impact on business and accounting practices both in the United States, and overseas. One will remember that as a result of the financial scandals in the United States like […]
China cuts individual income tax on bank savings
China’s State Council has announced that individual income tax on bank savings will be cut from 20 percent to 5 percent starting August 15, 2007. Income tax was leveled on personal bank savings on Nov. 1, 1999 as a means of encouraging consumption and investment, adjusting personal income and increasing national revenue. This reduction is an attempt […]
Potential for withholding tax on repatriation of dividends?
By Chris Devonshire-Ellis July 24 – A question has been raised concerning an omission that has occurred within China’s new corporate income tax (CIT) law which could mean withholding taxes being levied on the repatriation of after-tax profits for overseas businesses with foreign invested enterprises in China. Not yet commented on elsewhere, (eagle eyed Dezan Shira & […]
