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bdp: One-stop service for more than 25 years

Experienced consultants can generate value through supporting companies in various topics, e.g. in conducting effective evaluation and analysis for production and operation processes, establishing a modern management system, recommending and assisting in implementation of relevant actions to raise business benefits. When going abroad companies are likely to face plenty of difficulties due to the missing proximity to the parent company. Especially SMEs must ensure compliance with relevant laws and regulations abroad, e.g. in aspects of tax, legal, foreign exchange and customs.

Within more than 25 years bdp efficiently supported several hundred of clients in the fields of auditing, tax, legal, financing, process optimization, internal control, restructuring and M&A. It is our intrinsic goal to consult SMEs and their subsidiaries in their interest and to maintain an overview on their behalf of frequently changing requirements by taxation, company, labor and accounting laws.

As one of Germany’s leading consulting firms, bdp provide German companies „One-stop service, a whole package solution” to the companies that they may encounter the challenges in different stages of China´s investments. Please do not hesitate to contact our experts to discuss your China´s investment from the tax & accounting and legal perspectives.

Dr. Michael Bormann
Founding Partner of bdp

English

News

New Tax Treaty between Netherlands and China

On 31 May 2014, a new agreement between the Kingdom of the Netherlands (hereinafter referred to as “Netherlands”) and the People’s Republic of China (hereinafter referred to as the “PRC”) for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the “new DTA”) its protocol were signed in Beijing.

New Tax Treaty between Germany and China

On 28 March 2014, a new agreement between Germany and the People’s Republic of China (hereinafter referred to as the “PRC”) for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the “new DTA”) and its protocol were signed. The New DTA and its protocol will enter into force on the 30th day following the day on which both countries notify each other of completion of their respective ratification procedures.

Unification of VAT Levy Rate

Recently the Ministry of Finance, State Administration of Taxation issued a notice: unification of VAT rates. Except for a 5% levy rate applicable to the exploitation of crude oil and gas by Sino-foreign cooperative oil and gas fields, other applicable VAT levy rates of 6% and 4% are unified to 3%, effective from 1st July 2014.

VAT reform exemption exceeds RMB 220 billion, expand to telecommunications

Chinese businesses saved RMB 220.3 billion ($35.5 billion) as of the end of March, due to a pilot scheme to replace turnover tax with value-added tax (VAT).

Company Law of People’s Republic of China (2013 Amendment)

The new amendment to the Company Law comes into force on 1 March 2014. The amendment has lowered the company establishment requirements and reformed the company capital registration regime. We list the major changes from the previous 2005 version.

SAT Delegates Power of Recognizing and Verifying Tax-Resident

The State Administration of Taxation (SAT) recently issued the Circular on Recognizing Tax-Resident Enterprises by Standards of De Facto Management Bodies, clarifying relevant management measures following the delegation of the power of recognizing and verifying tax-resident enterprises to tax authorities at the provincial level and below.

Preferential income tax policy for small and low-profit enterprises

On 8 April 2014, the Ministry of Finance (“MOF”) and the State Administration of Taxation (“SAT”) issued “Announcement on Preferential Income Tax Policies for Small and Low-Profit Enterprises” ( Caishui 2014 No. 34), which is in effective from 1 January 2014 to 31 December 2016. Based on the announcement, small and low-profit enterprises whose annual taxable income not exceeding RMB 100,000, shall be subject to income tax at the rate of 20% on only 50% of the taxable income.

China Enterprises Annual Inspection is cancelled from 1st March 2014

In China, the long run enterprises inspection system ends in March 2014. The State Administration for Industry and Commerce announced that, since 1st March 2014, annual inspections on registered companies will be replaced by companies' annual reports, which should be available to public inquiry. Companies that fake reports or fail to release reports according to requirements will be punished in accordance with laws.

New double tax treaties between China and the UK, Belgium and France

New double tax treaties between China and the UK as well as between China and Belgium entered into force in December 2013. On 26 November 2013, the government of China and France signed a new Double Taxation Treaty, which could take effect from as early as 1 January 2015.

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