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Juha Lassila

China unifies city maintenance and construction tax and education surcharge for domesti... - 0 views

www.lexology.com/...detail.aspx

china tax info

shared by Juha Lassila on 29 Nov 10 - No Cached
  • In China, City Maintenance and Construction Tax is levied on transactions subject to VAT, Business Tax, and Consumption Tax. The tax base is the amount of VAT, Business Tax, and Consumption Tax paid. Tax rates are 7 percent for taxpayers in urban districts of cities, 5 percent for taxpayers in towns, and 1 percent for taxpayers in other areas.
  • This tax unification will increase the tax burden on operations and investment in China by foreign companies.
  • VAT payers who pay VAT at the regular rate of 17 percent of the sales price will need to pay an additional 1.7 percent of the sales price as City Maintenance and Construction Tax and Education Surcharge
Juha Lassila

China liberalizes foreign investment in medical services sector - Lexology - 0 views

www.lexology.com/...detail.aspx

china law healthcare

shared by Juha Lassila on 21 Dec 10 - No Cached
  • foreign-invested medical institutions ("FIMIs")
  • Foreign investors may choose to establish a for-profit or not-for-profit medical institution.
  • For-profit FIMIs will have autonomy in determining the pricing of their services. They will need to pay enterprise income tax on net profits, but not business tax (a turnover tax on, amongst others, certain services and generally applicable to business enterprises in China charged at various rates on gross sales depending on the nature of the underlying service).
  • ...4 more annotations...
  • for-profit medical institutions would be able to benefit from an exemption on property tax and urban land use tax on its property and land for self-use, and land-based vehicle and watergoing vessel use taxes on its land-based vehicles and watergoing vessels for self-use for a period of three years. Further tax breaks, including a three-year exemption for valued added tax on medical preparations that are made and used by the for-profit FIMI, may also apply[3].
  • From a government procurement perspective, all levels of PRC governmental authorities are now encouraged to purchase public heath services from private medical institutions.
  •  Qualification requirements for setting up an FIMI
  • The total investment amount must no less than RMB 20 million (roughly US$ 3 million or EUR 2.27 million);
Juha Lassila

China imposes tougher tax rules and administrative restrictions on Representative Offic... - 0 views

www.chinalawinsight.com/...ions-on-representative-offices

china tax rep_office

shared by Juha Lassila on 25 Dec 10 - No Cached
  • On February 20, 2010, the State Administration of Taxation (SAT) issued the “Measures for the Administration of Taxation on Representative Offices of Foreign Enterprises” (Guo Shui Fa [2010] No. 18)
  • a) Increased Deemed Profit Rate
  • The Actual Profit Method is subject to the ability of the Rep Office to properly record its operations in its financial accounting books and accurately calculate its taxable income and profit through proper reflection of the actual functions it performs and risks assumed and then report returns based on such records to the tax authorities on a quarterly basis.
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  • , if a Rep Office is unable to maintain complete accounting books, or cannot accurately calculate its returns or costs, the Rep Office will be taxed according to the Deemed Profit Method, which is based on the Rep Office’s costs or revenue. The selection will depend upon which amount can be more accurately illustrated by the Rep Office. The tax authority will designate a deemed profit rate to the Rep Office and calculate the taxable income based on such deemed profit rate.
  • he minimum deemed profit rate under the Deemed Profit Method was increased from 10 to 15 percent
  • c) Liability for Rep Offices to pay Value-Added Tax (VAT)
  • b) Abolishment of Tax Exemption
  • a foreign company which seeks to set up a Rep Office must show that the foreign company has been set up at least for two years.
  • n the case of a renewal the applicant will need to prove that the foreign company still exists. Further a limitation has been introduced as to the term of new and renewed Rep Office licenses for one year at a time (compared to the usual three years).
  • a maximum of four representatives, including the chief representative, are generally allowed in a Rep Office.
Juha Lassila

China imposes additional tax burden on foreign enterprise, foreign invested enterprises... - 0 views

www.lexology.com/...detail.aspx

china tax

shared by Juha Lassila on 23 Dec 10 - No Cached
  • City Maintenance and Construction Tax (“CMCT”)
  • Education Surcharge
  • Each surcharge is calculated as a percentage of the actual amount of the VAT, CT and BT paid by the taxpayers.
  • ...2 more annotations...
  • Education Surcharge is calculated at 3% of the VAT, CT and BT payments.
  • If the tax payer (or the tax withholding agent in case of a foreign enterprise) is located in an urban area, the rate is 7% of the VAT, CT and BT payments;
Juha Lassila

Enterprise Income Tax - Dezan Shira - 0 views

www.dezshira.com/...e-income-tax-subscription.html

china tax

shared by Juha Lassila on 21 Jan 11 - No Cached
  • Juha Lassila on 21 Jan 11
     
    "Enterprise Income Tax "
Juha Lassila

New tax notice brings some clarity on expat secondments - Lexology - 0 views

www.lexology.com/...detail.aspx

china tax

shared by Juha Lassila on 02 Dec 10 - No Cached
  • Juha Lassila on 02 Dec 10
     
    The SAT Interpretation lists certain factors (such as whether the overseas parent company directs the work of the employee or bears the salary costs of the employee, whether any profit is derived from the secondment, etc.) to determine if a seconded expatriate is working for the parent company. If any one of the conditions is met, the tax authorities may determine that the seconded expatriate is working for the parent company. The treaty clauses regarding PE will then be applied to determine whether the parent company creates a PE in the country where the subsidiary is located. In other words, if any of the factors are deemed to apply, the risk of the offshore parent company being deemed to have a
Juha Lassila

New Regulations for Resident Representative Offices in China | Regulatory Updates - Dez... - 0 views

www.dezshira.com/...entative-offices-in-china.html

china law setup startup

shared by Juha Lassila on 25 Dec 10 - No Cached
  • Representative offices cannot employ in excess of four foreign staff, including the chief representative.
  • representative offices will not be permitted to apply for tax exemption
  • representative offices may also not engage in any profitable activities
  • ...6 more annotations...
  • If you require your China operations to directly buy and sell, have its own import/export license, and legitimately trade in China – you will need to change your current RO structure to that of a foreign invested commercial enterprise (FICE) or wholly foreign owned enterprise (WFOE)
  • 2. ROs are now more expensive to operate than a FICE or WFOE
  • foreign invested commercial enterprises (FICE) These are typically used for the following business activities: • Import-export and distribution • Retailing: selling goods and related services to individuals from a fixed location, in addition to TV, telephone, mail order, internet and vending machines, • Wholesaling: selling goods and related services to companies and industry, trade or other organizations • Agencies, brokerages: representative transactions on the basis of provisions • Franchising Use of wholly foreign owned enterprises (WFOE) in the services industry • Consulting, other professional services • Quality control, after sales services, product design, technical support, sampling (although minimum amount permitted)
  • WFOEs may also be used for manufacturing.
  • the establishment of both a FICE and a WFOE are rather more complex than an RO
  • The structuring and application of the new FICE/WFOE can be combined at the same time as the RO closure.
  • Juha Lassila on 25 Dec 10
     
    Hmmm... If FICE/WFOE are more complex to setup then what about FIPs - Foreign Invested Partnersips?
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