Year of the Rabbit: Happy Chinese New Year 2023

Happy New Year to you, your family and loved ones. Have a wonderful spring fest!

Good news: the tax-free benefit policy for Foreigners will be extended for another two years, from January 1, 2022

According to the Notice on the Connection Issues of Preferential Policies after the Revision of the Individual Income Tax Law ("Cai Shui [2018] No. 164") issued at the end of 2018, among them, the preferential policy on tax-free allowance for foreign employees until December 31, 2021, is a matter of great concern to the public.

Webinar 06/08/2022: Financial due diligence for Chinese buyers in Germany

In this second part of our China inbound webinar series, we offer you the necessary knowledge for the financial due diligence of Chinese buyers in Germany.

Webinar: Due Diligence - Introduction for Chinese buyers in Germany

In this first part of our China inbound webinar series, we would like to introduce you to the issues that Chinese buyers need to be aware of when conducting due diligence in Germany and discuss with you how you as a buyer can get the best position in the whole transaction.

Summary of recent preferential tax policies

To incentivize business innovation and advance industrial upgrading, the Premier Li Keqiang mentioned a series of content closely related to the interests of taxpayers in the government work report on 5th of March, 2021, including extending the implementation period for some tax preferential policies, raising extra tax deduction ratio on manufacturing enterprises’ R&D costs, optimizing advanced manufacturing enterprises VAT tax refunds and optimizing preferential tax policies. Afterwards, Ministry of Finance and the State Administration of Taxation of the People's Republic of China has issued some of the policies mentioned in the meeting. In this newsletter, we will sort out the policies and proposals that are closely related to your daily business.

Profit Distribution

Even to this day, the profits of foreign-invested enterprises in China continue to accumulate. The following article will briefly describe the required documents and critical points for profit distribution.

Covid-19 Pandemic: An important link in the global supply chain.

China's "broken chain" effects on global supply chains from China to Europe and Germany

Covid-19 blows up international supply chains. Companies are now learning how fragile the global production system really is. The lockdown and quarantine actions initiated by China led to the closure of the factory in the world's second-largest economy, disrupting supply chains globally. In the next few years, as a production base and sales market, China's importance will continue. After the pandemic, most companies may reorganize their supply chain. Will the global industrial chain really underly a "Decoupling" from China in the short term?

Relevant precautions of the General Manager regarding civil, criminal and administrative liabilities in China

Given the increasing number of German top managers at the German parent company, who take the position as General Manager, Executive Director or Legal Representative of the Chinese subsidiary, we now summarize the relevant precautions of the General Manager in civil, criminal and administrative liabilities in China.

China‘s National People‘s Congress (NPC) passes new bill for foreign investments

By the end of the annual conference on March 15th 2019 China has voted for a new law that is supposed to bring an end to the disadvantages of foreign firms in China and aims for fair competition. The legislative regulations shall come into force on January 1st 2020. This Foreign Investment LAW (FIL) thus poses a legal foundation for investment- and business activities in China.

More Detailed Rules on China VAT Reform

In today’s Newsletter we will introduce the detailed rules of VAT reduction, which shall have an impact on the tax burden of your company.