As the Chinese government looks to reactivate the economy and avoid unemployment, a wide range of new preferential individual and corporate tax incentives have been approved and implemented since January 1, 2019 to bolster Small and Medium Enterprises’ (SMEs) competitiveness. The new Corporate Income Tax (CIT) cuts can result in substantial savings for low-profit firms and small private enterprises. Tax planning and optimization are essential in order to avoid paying more than you should as a small business owner. A slower than expected economic growth and the impact of the extended trade war with the United States, have pushed China to look for a different avenue to stimulate its local economy. Similarly, the coronavirus outbreak and rising operational costs have further complicated the situation, making this stimulus more necessary than ever. In this webinar we will be investigating the preferential tax policy in detail and how it can be implemented for one's business in China.
The operational aspects of the Chinese VAT Tax and Invoice Fapiao System
China’s Fapiao system is a complicated one that can be confusing for foreigners running a business. But in an effort to minimize your liability as much as possible, and to guarantee that you’re meeting any and all compliance requirements, it is in your own best interest to understand the VAT Fapiao system and how it relates to your company. From the operational perspective, you have two options when invoicing in China. The first is issuing the VAT invoice immediately to your Chinese customer instead of issuing a debit note or an Excel invoice. This is crucial because the moment the invoice is issued, it goes into the tax software system and regardless if your customer has paid or not, you are liable to pay VAT. In this webinar, we will provide you with an understanding of the China VAT Tax system, the Invoice Fapiao System and the operational aspects surrounding VAT within your company.
As one of the world’s biggest economies, China offers significant business opportunities for foreign companies. But attached to the lucrative benefits of doing business in the country come a set of rules and regulations, which when not taken seriously may result in tax audits, penalties, and other serious consequences. Taxes represent one of the most important sources of revenue for the Chinese government, and tax authorities have recently stepped up their efforts on enforcement and collection of corporate taxes. Even well-intentioned and honest businesses can get penalized for unqualified fapiao, missing supporting documents, and simple mistakes made by employees. In the past few years, the Chinese government has improved the country’s business environment to allure foreign investment and offset a slower economic growth. At the same time, they have tried to increase the overall awareness of the society and to pre-empt taxpayers from engaging in any non-compliance tax practice. In this webinar we will highlight a simple message: no more business as usual. The days of hiding profits and avoiding paying taxes in China are over. Find out how you can protect your China business and avoid a tax audit.
Implementing an Internal Control System for your China business
For many small to medium size companies in China it is difficult to implement an efficient internal control system to eliminate the possibility of corruption or fraud. But when executed correctly, these measures can improve the internal control environment and help reduce opportunistic behavior by employees and managers. During the past few years, the Chinese government has tightened up their regulations on corporate corruption and has implemented new legislation to reduce fraudulent practices that might have been common in the past. In this webinar we will provide tips on where internal control systems can be placed, how to effectively manage those control systems and provide recommendations on ongoing support to protect your China business.
Developing profit repatriation strategies for your China Business
One of the main concerns foreign investors have when deciding to establish a new business in China is if and when they will be able to repatriate their profits out of the country. This question makes many business professionals anxious before establishing an entity in China. The answer is simply yes. Just as any other country in the world, you will be able to transfer your funds out. The most important aspect is to ensure that your business operates in a transparent and legal way, within the country’s rule of law, and complies with all its fiscal obligations. As an individual, if you are planning to relocate out of China, you can also take your money out of the country. There are a few regulations and procedures that need to take place first, but in general there are no obstacles for repatriating capital. In this webinar we will be discussing the types of repatriation strategies that can be created and the procedures to process the payments overseas.
China is the world’s second largest economy and an important market for any international company. Even if you are a small player, it’s important to think big and have a China strategy in place. China can be a difficult market to crack and even more so for start-ups. It is a common journey that businesses go through, and it is more predictable than most people realize. From hundreds of entrepreneurs, companies and leaders from the USA, UK, Australia, Canada, and Europe, we have learned that there are certain problems and frustrations that come along at very predictable times. More importantly, there are also certain ways to overcome them if you know the journey ahead of you. In this webinar session, we will look at Woodburn’s China Roadmap method which consists of accomplishing 3 major milestones and 9 superpowers needed by a company, entrepreneur and/or leader to build a “performance” business in China.
Learn from the industry leaders about how to activate successful marketing in China, win new customers, grow your customer loyalty and future-proof your company’s success. Hear from speakers at Westwin, China Britain Business Council, Alibaba, iPinYou, China Marketing Corp, Woodburn Global and more. Plan China is a collaborative educational resource drive, which aims to empower marketers with essential knowledge about China. Plan China is owned and operated by Westwin (formerly Microsoft China).