Case Studies

IIT and PE issues for a HK consulting firm

A HK consulting firm (‘A’) sent its consultant staff to Mainland China to provide consultant services to the clients of an advisory company in Mainland China (‘B’). A charges B consultancy fee of RMB 5m. Under normal circumstances, the consultant staff would not spend more than 183 days in any calendar year on the whole firm basis. However, starting from Year 2020, A’s staff kept staying in Mainland China because of COVID-19 pandemic. A engaged CW to assess the tax exposures for H and for its staff in Mainland China.

A Fallacy about the Requirements for Keeping Hi-Tech Status

A multinational group headquartered in the US (“US Co.”) owns a subsidiary in Hong Kong. The Hong Kong subsidiary (“HK Co.”) is the shareholding company of a Foreign-Invested Enterprise (“FIE”) in Mainland China. The FIE’s primary business involves sourcing telecommunication products from China and locally selling to their corporate clients.

Solutions for a Foreign-Invested Enterprise to Increase Capital

A multinational group headquartered in the US (“US Co.”) owns a subsidiary in Hong Kong. The Hong Kong subsidiary (“HK Co.”) is the shareholding company of a Foreign-Invested Enterprise (“FIE”) in Mainland China. The FIE’s primary business involves sourcing telecommunication products from China and locally selling to their corporate clients.