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
Typical questions which arise regarding China taxes, are: How can we structure our business in China in order to minimize taxes? Is it sufficient to establish one legal entity in China? What are the tax implications of having branches in different geographical areas of China? 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. |