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Category: Insights

Businessmen teamwork meeting to discuss the investment.
China Consulting

A Concise Guide to Working with Distributors in China

You are ready to venture out for your company’s overseas expansion. Green and inexperienced when it comes to the Chinese market, you are however reluctant to jump in at the deep end. Ease, efficiency and cost-effectiveness are your top-of-mind priority. Partnering up with a local distributor is often designated a safe way to test the waters, but is it what it seems? Its all-too-often accepted label as a “soft landing” belies traps and trouble, so keep your wits about you

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China Updates

China Waived PU Letter Requirement for Z-Work Visa Applicants

What’s New? Starting from 6 June 2022, foreign nationals coming to China for work and dependent family members are not required to apply for the PU Letter. Accordingly, Chinese embassies in several countries have updated their visa application policies. Affected Individuals In particular, the following categories of foreign travelers no longer need to obtain a PU letter as part of their visa application materials: Foreign nationals who have obtained a Notification Letter of Foreigner’s Work Permit. Foreign nationals who hold

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China Updates

Recent requirements for “Real-Name Authentication” in China

According to the new regulation recently promulgated by the State Administration for Market Regulation, a real-name authentication is imposed on those individuals who are in the following (but not limited to) positions in the process of establishment, change, filing, or deregistration of an enterprise: Legal Representative; Person in-charge; Individual shareholder; Director; Supervisor; Senior management personnel (including but not limited to General Manager, and Finance Person-In-Charge); Contact officer with the registration authority; Receiver for service of legal documents of foreign investors;

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Insights

Individual Income Tax Special Additional Deductions: Childcare Expenses for Under-three-year-old Infants and Toddlers

On 28 March 2022, the State Council published the Notice on the Establishment of Individual Income Tax (IIT) Special Additional Deduction for Under-three-year-old Infants and Toddlers’ Childcare. The new policy specifies that childcare expenses for children under three years old can be deducted from one’s IIT taxable income at RMB 1,000 per month per child from 1 January 2022 onwards. Regarding the deduction method, parents and/or guardians can choose to split the deduction (50% each) or one parent/guardian can opt

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China Consulting

China’s Updated Measures on Supervision and Administration of Business Operations of Medical Devices 2022

Regulations on business operations of medical devices have been further tightened as of 1 May 2022, as authorities work on updating existing guidelines. To improve existing industry guidelines, the State Administration for Market Regulation released the latest version of the Measures on Supervision and Administration of Business Operations of Medical Devices (“the Measures”), which took effect on 1 May 2022. The Measures enforce stricter regulatory requirements and strengthen the supervision, inspection and management of medical device production and operation throughout

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Word tax and acronym VAT Value Added Tax, in 3D wooden alphabet letters in crossword form.
Insights

Input VAT Credit Refund Policies in China

On 21 March 2022, in order to support the development of micro and small enterprises, manufacturing and other industries, boost confidence of market players and stimulate the market development, the Ministry of Finance (MOF) and the State Taxation Administration (STA) released Announcement [2022] No. 14, which expands the scope of policies for monthly full refund of incremental VAT credit for the advanced manufacturers to qualified micro and small enterprises in all industries as well as qualified medium and large-sized enterprises

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Insights

Seven Areas of Tax Savings for SMEs in China for 2022-2024

The Chinese government has released a series of incentives relating to corporate income tax (CIT), value-added tax (VAT), and other taxes for Small and Medium Enterprises (SMEs). Here are seven areas where SMEs can save taxes in China. 1. Lower CIT rate for small low-profit enterprises Small low-profit enterprises mean the enterprises that engage in non-restricted and non-prohibited businesses and meanwhile satisfy the following three criteria: The annual taxable income amount does not exceed RMB3 million; The staff headcount does

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China Consulting

On Simplified Registration and Filing Matters for All Market Entities in China

On 27 July 2021, China released the new Administrative Regulation of the People’s Republic of China on the Registration of Market Entities (“Regulation”), which is the first unified administrative Regulation to regulate all types of market players. The Regulation was enacted on 1 March 2022. On the same day, China released the relevant implementation rules. The Regulation and its subsequent implementation rules, combine and integrate the registration management of all types of market entities and achieve the unification of rules

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China Updates

China Updates – March 2022

Administrative Regulation of the People’s Republic of China on the Registration of Market Entities  On 1 March 2022, China enacted the new Administrative Regulation of the People’s Republic of China on the Registration of Market Entities, which is the first unified administrative regulation to regulate all types of market entities in terms of registration and filing matters, registration procedures, and norms, application materials and documents, etc.  Market entities refer to all natural persons, legal persons, and unincorporated organizations that engage in

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Greater Bay Area

Hong Kong Budget for Fiscal Year 2022-23 During a Critical Time

On 23 February 2022, Hong Kong’s Financial Secretary, the Hon Paul MP Chan, delivered the 2022-23 Budget Speech. Mr. Chan expects Hong Kong to have a surplus of HK$18.9 billion for 2021-2022 and a deficit of HK$56.3 billion for 2022-23, but the fiscal reserves will gradually rebound to over HK$1 trillion from 2023-24 to 2026-27. With the impacts of the recent worsening of the COVID-19 pandemic, the 2022-23 budget is focused on relieving people’s hardship, supporting enterprises, development industries, and

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