• China launches unilateral visa-free policy for Spain and other 5 countries on a trial basis

    In order to facilitate cross-border communication, China has decided to expand the pilot scope of unilateral visa-free countries, and as a result, China’s visa policy will soon undergo significant changes. 
  • Relief the Individual Income Tax burden of taxpayer in China: extending the preferential policy period or increasing the deduction standards

    In August 2023, there are a number of individual income tax (IIT) preferential policies implemented by relevant Chinese government authorities with either extension of the preferential policy period or increased deduction standards. The aim is to further relief the tax burden of taxpayer.
  • Key Developments in the Laws and Regulations of China in 2023

    This newsletter selects and briefs key developments in the laws and regulations of China in relation to foreign investment until August 2023 for your reference.
  • China: Highlights of Envisaged Amendments to PRC Company Law

    A few months ago, China released the Company Law (Second Draft Amendment). The envisaged amendments include company's organizational structure, shareholder capital contribution and other aspects. This article briefs some highlights in light of the relevant amendments to the current effective Company Law of People’s Republic of China.
  • Latest COVID-19 related regulations and policies in China

    Due to the ongoing situation of COVID-19 in China, especially in Shanghai, the Chinese government has introduced more regulations and policies or extended the deadline of the previously issued regulations and policies to further support both the economic development and the business. In this Newsletter, we will share with you detailed provisions of these policies in Shanghai focusing on the topics of labor and employment, leasing, tax, etc. Depending on the location of your business, there could be more specific implementation rules at local level.
  • China: EIT Preferential Policy for the Small Enterprises with Low Profit

    From 1 January 2021 to 31 December 2022, small enterprises with low profit will be subject to EIT of 2.5% on the part of annual Enterprise Income Tax (EIT) taxable income that is no more than CNY 1 million.
  • China: Value Added Tax exemption policy for small-scale taxpayers

    On March 24, 2022, the Ministry of Finance and the State Administration of Taxation (SAT) issued an announcement regarding the Value Added Tax (VAT) exemption for the small-scale taxpayers that will be applicable from April 1, 2022 till December 31, 2022. The SAT issued Announcement (2022) No. 6 and provided official explanation on the same day, to elaborate the implementation measures related to such exemption policy.
  • China: Promotion for the Input Value Added Tax Credit Refund Policy

    According to Announcement (2019) No. 39 issued by Ministry of Finance, State Administration Taxation and General Administration of Customs (Announcement No.39) as well as other related tax regulations, taxpayers that meet the following criteria could apply for the refund of the incremental uncredited input Value Added Tax (VAT, in general, incremental uncredited input VAT = monthly ending balance of the uncredited input VAT – ending balance of the uncredited input VAT in March 2019) from April 2019.
  • Transfer pricing documentation filing obligation in China

    Since the tax year of 2021 is ended, Chinese companies, including foreign invested ones, might be required to perform the filing of related party transactions for 2021 with the competent tax authority in 2022. There are four types of Chinese transfer pricing documentation filing obligations, including master file, local file, special issue file and country-by-country report (CbCR). We suggest you to internally review the following conditions of transfer pricing documentation filing obligations and resort to us in case you need any assistance either in assessing the criteria or in preparing related mandatory documentation.
  • China Issues New Versions of Negative Lists for Foreign Investment

    Since 2018, China started to implement the “Negative List” approach for the administration of foreign investment nationwide, and has updated the Negative Lists periodically since then. The Negative Lists set out in a centralized manner special administrative measures with respect to the access of foreign investment. Business sectors not specified in the Negative Lists are subject to administration under the principle of treating domestic investment and foreign investment equally.