China
03-30-2022
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.
03-28-2022
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.
03-28-2022
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.
01-24-2022
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.
01-10-2022
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.
01-04-2022
On December 31, 2021, the Ministry of Finance and the State Administration of Taxation have decided to continue that the IIT preferential policy of allowances for foreign individuals (e.g. home visit, housing allowance, children’s tuition fee etc.).
12-30-2021
On December 29, 2021, the executive meeting of the State Council has decided to continue the implementation of some IIT preferential policies as follows:
10-15-2021
Recently, China formally passed the Personal Information Protection Law (PIPL), which is the first comprehensive national level personal data protection law of this country. PIPL will become effective as of November 1, 2021, leaving a short time for the companies operating in China (and even certain foreign companies) to become fully compliant to the new personal data protection regime.
09-15-2021
Taxpayers should pay attention to the following Chinese tax regulation updates regarding outbound remittance in China: one record filing for multiple remittances under one contract and the cancelation of the Local Tax Surcharges related to Withholding Value Added Tax (VAT) and Consumption Tax (CT).
08-18-2021
The subjected question is one of most popular questions raised by the foreign invested entities in China. Our answer is YES. The Chinese entities need to contribute the PRC social security for foreign employees working in China, and said foreign employees need to contribute individual part of the PRC social security as well.