China tax planning service
Hotline: 86-755-82148419, Email:Info@citilinkia.com
For each enterprises that estbalished in China, they must pay for tax to the Chinese government . To gain the legal right and the general procedures for running business. According to Corporate Income Law of the People’s Republic of China the Law is a basic rule-setting move that will create a playing field for all enterprises
Definition for China tax planning
Tax planning is a logical analysis of a financial situation or plan from a tax perspective, to align financial goals with tax efficiency planning. The purpose of tax planning is to discover how to accomplish all of the other elements of a financial plan in the most tax-efficient manner possible.
Enlightments for China tax planning
1. Tax havens identified by OECD will be the main target in the Law for anti tax dodge purposes as long as the tax authorities are well aware of the situation in that FDI multi-national companies are using vehicles of tax havens that have helped dodged much taxation. Offshore tax havens would be indicated in rules of detailed implement by the State Council of PRC under Article 4 and Article 45 because their tax is lower than 25% that is set in the Law. The Chinese government is actively talking to tax havens on bilateral agreement on exchanging of information and crack down tax evasion. It will not have an obvious result in short run but cooperation on anti-money laundering or anti-corruption might approach a quick agreement.
2. Offshore companies that keep account with banks in China will have to reconsider their arrangement if they are using their suppliers’ addresses for liaison or delivery of orders. Many non-state-owned Chinese companies and individuals have made so called tax structure through consulting companies who have no knowledge on Chinese tax laws, having been using their domestic administration in China when they register companies in various countries including tax havens in terms of receiving payment from outside China with offshore bank account opened with banks in China. It is obviously under CFC provision of Article 45.
3. Members or directors or officers of offshore companies with management or administration in China may be liable by offending Chinese criminal law Article 201 and Article 203 on tax.
Conclusion.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com