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Category: Tax Advisory

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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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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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shenzhen
Insights

Tax incentives to attract talents to the GBA

The Chinese Government has linked the largest urban cities to develop the world’s biggest urban area, The Greater Bay Area (GBA). The cooperation between the 11 member cities aims to develop further and improve multiple sectors, including technology and innovation, infrastructures, and transportation networks, ultimately building job opportunities. However, alongside comes many challenges. One is attracting talent. Hence, the question arises, how does the government aim to attract this talent who will be the driving force of this ecosystem? In

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Hong Kong
Insights

Hong Kong Budget for Fiscal Year 2021-22 during the times of Uncertainties

On 24 February 2021, the Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan Mo-po, delivered the 2021-22 Budget Speech. With the impacts of China-US tension, social incident, COVID-19 pandemic, Hong Kong is faced with a lackluster economy and a deteriorated labour market.  Hong Kong expects a record deficit of HK$257.6 billion and HK$101.6 billion for 2020-2021 and 2021-22 respectively, meaning that there would be deficit for four consecutive years.  The Financial Secretary’s 2021-22 budget is focused

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Insights

Colombia and the significant changes in accounting and tax matters

In the search for a system of international approval, the process experienced by Colombia in all areas presents the best letter of introduction to join the Organization for Economic Cooperation and Development (OECD), reflecting that Colombia exercises good practices and that our companies have adequate corporate governance schemes, information, and management of companies in their standards. After seven years of the previous government’s accession process, Colombia becomes the 37th member of the organization, reflecting that the country has reached high standards in global public policy on 28 April 2020. On the other hand, the

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Insights

Tax Benefits and New Tax System For Micro-Enterprises In Ecuador

Contributed by Diego Zambrano, Tax Consulting and Practice Manager, Audit Corporate / Tax Corporate A new tax regime for micro-enterprises was established in 2020 in Ecuador, which applies to those taxpayers (societies or natural persons), including entrepreneurs who fulfill the status of micro-enterprises, i.e. having 1-9 workers and an annual income of less than US$300,000. This regime applies to the following taxes: Income Tax (IR), Value Added Tax (VAT), and Excise Tax (ICE). Taxpayers not included Taxpayers engaged in activities related to the banana sector, construction contracts, or those

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Calculating Tax
Insights

Restructure your business with tax certainty

The health contingency has knocked on the door worldwide and forced many companies to specialize or generalize activities, make the most of synergies, redistribute benefits, modify cost structure, process outsourcing, process optimization, etc. If changes are made within the company or the business group to which they belong, the company results in a change in its assets, functions, and risks, we are in the presence of a business restructuring. According to OECD guidelines, company restructuring refers to the cross-border reorganization

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Insights

Charities: to tax or not to tax?

Charities In Hong Kong SAR, there is no statutory definition of what constitutes a charitable institution or trust of a public character (“Charity”) with a charitable purpose, nor is there a single piece of legislation which governs Charities in Hong Kong and how donations are applied. In 2017, the Hong Kong SAR Government’s Audit Commission reviewed various government departments’ supervisory measures on Charities and it advocated strengthening supervision thereon. Four heads of charity  According to Section 88 of the Inland Revenue Ordinance (“IRO”), Charities should apply to the Commissioner of Inland Revenue if

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Mexican flag waving in Mexico’s centro histórico with cathedral and presidential palace in the back.
Insights

TMEC: Investment opportunities in Mexico

After more than two years of negotiations, the new trade agreement between Mexico, the US and Canada, now called the T-MEC has entered into force on 1 July 2020.  Although most of the agreement did not have significant changes, some modifications will impact the way of operating companies within the region, as well as the performance of the North American economy. From NAFTA to T-MEC With the entry into force of NAFTA in 1994, trade within the North American region grew considerably.

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