Tax Consulting

A foreign invested enterprise in the P. R. China has to deal with various taxes which give rise to countless detail questions and practical challenges:

■  Enterprise Income Tax
■  Business Tax
■  Value Added Tax
■  Withholding tax for cross-border transactions
■  Individual Income Tax


Typical questions which arise regarding China taxes, are:

How can we structure our business in China in order to minimize taxes?
What are the advantages of establishing a holding company in Hong Kong or Mainland China?

Is it sufficient to establish one legal entity in China? What are the tax implications of having branches in different geographical areas of China?
Is there a refund for my input VAT, when I export goods from China?
If we second staff to China, under which circumstance may this be regarded as a permanent establishment with own tax duties?

Another common issue encountered by many foreign invested enterprises are the taxes related to cross border cash flows, in particular from China to Europe. Smooth payment /repayment of loans, dividend transfers and settlement of service fees from China to Europe can only be guaranteed by prudent and adequate structuring of the transactions.