Tax

Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, offers a quick guide on the income tax implications of China’s “six-year rule” for foreigners working in China In 2019, China introduced a significant change to its individual income tax (IIT) system by implementing the “six-year rule” for foreigners. This rule, which starts applying in 2024, determines how foreign residents are taxed on their overseas income. What is the …

Under China’s New Company Law, companies and stakeholders face new tax implications. Ahead of its implementation, Dezan Shira & Associates details what businesses in China need to know Against the backdrop of China’s New Company Law, which will come into effect on 1 July 2024 after a long revision process, companies, shareholders, and creditors will face new tax implications. Before transferring capital to a new company, deciding the contribution form, …

Kristina Koehler-Coluccia, Head of Business Advisory, Woodburn Accountants & Advisors, discusses the main considerations for foreign businesses who need to repatriate profits from China One of the main questions foreign investors have when deciding to establish a new business in China is: can I repatriate my profits out of the country? The answer is simply yes. Just as in any other country in the world, you will be able to …

China has extended its preferential individual income tax policy for foreign professionals living and working in China until 31 December 2027 (previously set to end on 31 December 2023) The extension of the individual income tax (IIT) preferential policies means that non-China domiciled tax residents (i.e., people who do not have a domicile in China but live for 183 days or more in China in a given tax year) can …

China will exempt small businesses with monthly sales of RMB 100,000 or less, as well as taxpayers in specific industries such as lifestyle services, from value-added tax (VAT) throughout 2023. Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, explains more The VAT incentives are meant to help vulnerable businesses overcome the difficulties of the Covid-19 pandemic and represent an extension of previous policies. A wide range of …

Chinese tax authorities have vowed to crack down on tax evasion by celebrities and online influencers such as Fan Bingbing and Viya, but they’re also keen to reduce taxes and fees for businesses and SMEs, writes Torsten Weller One of the most visible expressions of China’s new ‘Common Prosperity’ policy has been the stricter enforcement of individual income tax violations. In December 2021, Chinese tax authorities fined live-streamer Huang Wei …

China has extended its preferential individual income tax policy for foreign professionals living and working in China until 31 December 2023. A series of exemptions and allowances, including housing rental and children’s education, were previously set to change on 1 January 2022 The extension of the individual income tax (IIT) preferential policies means that non-China domiciled tax residents (i.e., people who do not have a domicile in China but live …

China offers a range of tax incentives to encourage the growth of industries and technologies such as semiconductors, artificial intelligence and biopharmaceuticals. But what kind of companies qualify for these innovation tax incentives? As China endeavours to shift from a low-end mass manufacturer to a high-end producer, the government has doubled down on encouraging targeted investments in R&D and technological innovation. The ongoing technology confrontation with the US is another …

What subsidies, tax benefits and intellectual property protections can UK companies receive when setting up or expanding their presence in South China? Hawksford and Zhong Lun Law Firm explain Cities in the Greater Bay Area (GBA), which links nine cities in Guangdong with Hong Kong and Macau, already present foreign businesses with subsidies based on the size of their investment and future contribution to the local economy with specific requirements …

Kristina Koehler-Coluccia from Woodburn Accountants & Advisors examines how changes to the Individual Income Tax Law (IIT) will affect earnings for foreign professionals living and working in China  A series of expatriate allowances and tax exemptions that had long been aimed at attracting foreign talent to China will no longer be valid starting 1 January 2022. This will directly impact the taxable income of foreigners working in the region. According …