In China, the invoice — or fapiao (发票) — is an essential component of the State Administration of Taxation (SAT). In accordance with the Administrative Measures of the People's Republic of China for Invoices (revised in 2010), invoices refer to the certificate of payment or receipt of money made or received in purchases and sales…
Read moreThe revised Individual Income Tax (IIT) promulgated on 31 August 2018 and fully effective from 1 January marks significant changes to the individual taxation in China. Primarily, the changes relieve certain tax burdens for low and middle income-earners. In previous tax articles, we have highlighted a number of key takeaways related to IIT. For foreigners…
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"Guanxi" (关系 guānxì) — pronounced gwan-shee — is one of the most potent forces in Chinese culture. Its direct translation means “relationships”, however, the reality of guanxi is that it relates to “connections” formed over time by the reciprocation of social exchanges and favours, the latter often related to business. Foreigners doing business in…
Read moreOn 25 June 2018, the Bank of China issued the Notice of the People’s Bank of China requirements for non-financial institutions to report large transactions (the Notice) effective from 1 January 2019. Below, we highlight the main takeaways from the Notice. Who is required to report? Any non-financial institution holding a payment business license, including…
Read moreThe Standing Committee of the National People’s Congress revised the Individual Income Tax Law of the People’s Republic of China (IIT). The revisions came partly into effect in October 2018 predominantly affecting tax rates and general standard deductions for general income (please see previous tax-related articles). From 1 January 2019, the revised IIT law goes…
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