Other Briefings
Did Xi set a New Direction for Tax Reform in China?
Chinese President Xi Jinping hinted at a new direction for tax reform during the 19th Party Congress, which ended last week in Beijing. Although the statements made during Xi’s speech were broad, and had little in the way of specifics, Xi’s speech could signal a new direction of reforms for China’s tax system.
Paying Foreign Employees in China: Individual Income Tax
In this article, we explore how individual income tax is calculated for foreign employees in China. The rules differ slightly from those for local nationals, and depend in large part on how much time one has spent in the country.
Why is China’s Tax System so Complex?
Despite recent efforts to streamline the tax system, China’s tax system can be bewildering for foreign investors unaccustomed to its intricacies and idiosyncrasies. In this article, we examine why China’s tax system is so complex.
How China’s VAT System Skews Financial Reporting
Foreign investors reviewing Chinese financials may find themselves at a loss to ascertain the standard for booking revenue and expenses. Here, we look at how distortions in financial reporting can arise from China’s VAT system.
Internal Control for Day-to-Day Operations in China
The issues that arise in day-to-day business in China present a unique business environment for implementing internal control. Here, we outline areas where companies in China are often exposed to fraud, and present practical internal controls to mitigate exposure.
China Deepens VAT Reform to Combat Financial Complexity
The government’s latest effort to improve the tax system sets out to enhance the non-standardized tax rate structure, simplify the tax compliance system, and push forward VAT legislation. In this article, we look at how the latest announcement by the State Council fits in with the recent tax reforms.
Export Tax Rebates in China
While a useful channel for recovering the costs of input taxes paid, not all goods are subject to tax refunds upon being exported. Businesses must register for, and keep tax authorities updated on their exports eligible for VAT tax refunds. In this article, we look at the different types of tax rebates, and how to obtain them.
Internal Control Review: Audit and Evaluation in China
An internal control review (ICR) might be the best step for foriegn companies to assess internal controls within their Chinese subsidiaries. Unlike annual audits, the ICR focuses on the specific management process in place. In this article, we investigate key considerations and specific steps involved to carry out an ICR.
