HR Summit 2021 CW

CW at 5th HR Summit of German Chamber South China

Human Resources prove to be crucial to companies of all sizes, especially in these challenging times. CW understands the importance of proper human resource management and is honored to be a gold sponsor of the 5th HR Summit of the German Chamber of Commerce in China | South & Southwest.

The Summit invited over 60 human resource professionals and corporate representatives from 30 companies, including CW, allowing them to obtain a better insight into the human resources management field. The attendees had a lively exchange of successful practices and built networks in the industry.

Ms. Louis Tan, Assistant Manager of CW, was the designated speaker for a workshop regarding the latest updates on individual income tax (IIT) in Greater Bay Area, Mainland China. The successful event aroused a great interest among the participants and ended on a satisfactory note.

Written by Therese Feng, German Desk, CW CPA

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Economic Summit and Welcome Dinner

CW sponsored the Economic Summit and Welcome Dinner of AHK Guangzhou

CW was honored to sponsor and attend the Economic Summit and Welcome Dinner arranged by the German Chamber of Commerce | South and Southwest on 30 August 2021.

The event focused on the economic sector, risk management and remote control, cross-border liquidity issues, and other hot topics involved in doing business in South China, aiming to bring practical and valuable information to the corporate members. A Welcome Dinner followed for the new Consul General of the Federal Republic of Germany in Guangzhou, Mr. Jan Rudolph, and the Executive Director of German Chamber of Commerce | South and Southwest, Mr. Martin Klose.

We greatly appreciate this opportunity to connect with and expand our network in the Sino-German business community. 

Written by Therese Feng, German Desk , CW CPA

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Webinar

Webinar with German Chamber Hong Kong: Empower Your Company’s HR and Payroll Management with AI and Cloud Technologies

On 8 June 2021, CW CPA delivered a webinar, arranged by German Chamber of Commerce, Hong Kong, on how AI and cloud technologies can empower a company’s HR and payroll management by teaming up with Neufast and e5Talent.

During the webinar, Ms. Agnes Wun and Dr. Meng Lyu illustrated how Neufast’s AI-powered recruitment tool could enable cost-efficient, reliable, and engaging hiring processes. Ray To, Senior Manager of CW CPA, together with Lawrence Kwok who represented e5Talent (our business partner), then explained the value of technology solutions in payroll management and how cloud solutions of e5Talent can help to transform HR management digitally.

Written by Therese Feng, German Desk, CW CPA

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Webinar: Empower Your Company’s HR and Payroll Management With AI and Cloud Technologies

Traditionally, when HR and payroll management comes to mind, we think of recruitment involving face-to-face interactions, attendance records through card readers and sign-in sheets, leave, and claims request managed with hard copies and lots of paperwork, etc.

However, the COVID-19 pandemic has enforced considerable changes upon numerous companies. For example, employees are now able to work remotely from home or even abroad. It is almost impossible to administer HR and payroll through traditional means. With technologies like AI and cloud, companies are able to streamline remote recruitment, attendance, leave applications, performance assessment, training, as well as other HR and payroll processes.

At this webinar to be organized by the German Chamber of Commerce, Hong Kong, speakers from Neufast and CW CPA will give you more insights on how these technologies can empower your company’s HR and payroll management.

Date: Tuesday, 8 June 2021

Time: 11:00 am – 12:00 noon

Cost: Free for GCC members / HK$150 per person for non-members

Remarks:

  • The access link for the webinar will be sent to participants 1 day before the event. This session will be conducted via GoToWebinar.

Register now: https://gicgcchk.glueup.com/event/37112/register/

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CW at German Chamber Spring Reception 2021

From 21 to 22 April 2021, the German Chamber of Commerce Southwest China held its 2021 spring reception in Shenzhen and Guangzhou. More than 110 members and friends gathered and spent two pleasant evenings. CW German Desk Business Advisor , Therese Feng, had the honour to attend it on 22 April 2021 in Guangzhou, together with Phenix Zheng, Manager (FDI Legal Counsel) from our China Consultancy Team.

Written by Therese Feng, German Desk, CW CPA

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E-Commerce

E-commerce in the European Union and its VAT changes in 2021

  • The European Union will implement new Value Added Tax (VAT) regulations on cross-border e-commerce businesses on 1 July 2021. Due to the increase in globalization, international trade and the need for worldwide tax controls, the new regulation aims to simplify and modernize the procedures.   

    How will this affect exporters from China? How can you regulate your sales in EU? 

In response to the increase in globalization, international trade, and the need for worldwide tax controls, on 1 July 2021, the European Union will enact the new regulatory package of Value Added Tax (VAT) on e-commerce.    

The package introduces the ‘Import One-Stop Shop’ electronic portal, which regulates the payments of e-commerce VAT in each member state. This change concerns the growth of e-commerce and digitalization, which have boosted international trade; Companies based in the European Union selling online can also export to mainland China and Hong Kong, and vice versa. 

 

KEY CHANGES IN VAT REGULATIONS  

  • Changes in VAT declaration   

The regulation includes an important change of the VAT collection method on e-commerce. Previously, VAT was paid in each European Union member state, depending on the seller’s location. To illustrate, if a seller in Germany sells products online to a Spanish client, VAT would be declared and taxed in origin, Germany.   

As of 1 July, 2021, tax will be declared in the state where the buyer is located and the purchase is made. Hence, in the previous example, the VAT declaration would be made in Spain. This regulation also affects sellers outside the European Union.  

  • Exemptions of the VAT   

The current system permits VAT exemptions on products imported to EU which are less than €22, while those products exporting from EU are still subject to VAT. This exemption makes imported products more competitive in terms of price compared to those of European origin.    

The regulations as of 1 July will eliminate the e-commerce VAT exemption for products with a value of less than €22, which implies that all imports to EU, even those of little value, will be charged VAT at the destination. This is one of the most supported initiatives since it can balance the playing field between imported products and local products.   

Meanwhile, imports of products with a value of less than €150 are still not subject to customs duties and do not require a full customs declaration. 

 

IMPLICATIONS FOR ONLINE SELLERS FROM MAINLAND CHINA OR HONG KONG  

The different online platforms and marketplaces are contemplated in this regulation as these platforms are, by far, the most used vehicles for the sale of online products from overseas, including China and other parts of Asia. On behalf of users and buyers, the platforms will act as guardians of compliance with the e-commerce VAT, which especially includes those outside the European Union member states and that import from non-member countries.  

Although the general concern for exporters whose sales cover the entire EU territory is how to make the declaration in multiple states, the ‘Import One Stop Shop’ records, and files all declarations across the EU. On the contrary, if the seller does not want to use the ‘Import One Stop Shop’, the alternative is to allow the final consumer to pay VAT when the product is delivered, and all responsibilities and declarations rest on the consumers.  

The foreign trade community is concerned about the increase in costs borne by the final consumers. As VAT is an indirect tax, it is transferable to final consumers. For example, a European consumer who initially purchases a product imported from China valued at €20 may have to pay €24.2 for the same product in Spain after the implementation on 1 July 2021.  

There is a worldwide trend for regulation of VAT on imports. To demonstrate, some cross-border trading platforms in China require companies that ship products to pay VAT in advance for all merchandise.   

How quickly will the final consumers adapt to the VAT regulations of electronic commerce in the European Union, especially in pandemic times? It is only a matter of time the end consumers adapt to these changes.   

Written by Luz Deneb Martínez, Latin Department, CW CPA

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Sino-German Business Updates

Sino-German Business Updates – November 2020

Siemens Healthineers Unveils Range of Cutting-edge Tech at CIIE 

The third China International Import Expo (CIIE) was held from 5 to 10 November 2020. It was an ideal platform for enterprises to network in China and seize new opportunities. At CIIE, German medical technology company, Siemens Healthineers, unveiled a range of cutting-edge technologies, innovative products, and total solutions, including a fever-clinic solution and an interventional surgery robot called Corindus, which made its China debut. 

 

German Automaker Daimler Underlines Chinas Role and Importance 

From 11 to 13 November 2020, the China Development Forum was held in Beijing under “Economic Recovery and International Cooperation in a Post-Pandemic Era”. At the forum, Daimler AG, the parent company of Mercedes-Benz, underlined China’s role and importance for the global economy as well as the automotive industry. 

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Sino-German Business Updates – October 2020

Xi Jinping’s message on opening-up meets with warm response by the German Chamber 

President Xi Jinping delivered speech at the gathering marking the 40th anniversary of the Shenzhen Special Economic Zone on 14 October 2020, which has been warmly greeted by audiences from all walks of life, especially the local German Chamber community. 

“Foreign companies’ expertise and experience have been indispensable for China’s growth over decades,” said Maximilian Butek, delegate and chief representative of the Delegation of German Industry and Commerce Guangzhou. 

China is Germany’s most important trading partner and German companies are committed to the market, he said. “We are all eager to sustain and strengthen existing partnerships.” 

 

2020 China-Germany Automobile Conference Successfully Held 

The 2020 China-Germany Automobile Conference was held from 13 to 16 October 2020. The conference set its main venues in Changchun, Jilin, Changsha, and Hunan as well as other venues in Ingolstadt and Dusseldorf of Germany. 

The Chinese and German auto sectors have close, long-standing ties, and this year’s conference has attracted more than 400 participants including company representatives, government officials, and experts from the two countries, discussing a wide range of topics, including industry cooperation and future technologies. 

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For cooperation and inquiry about our German Desk, please feel free to contact Ms. Therese Feng (therese.feng@cwhkcpa.com).