Tag: #china

China’s Anti-Foreign Sanctions Law impacts on companies and individuals

On 10 June 2021, the Standing Committee of the National People's Congress ("NPC") adopted the Anti-Foreign Sanctions Law of the People's Republic of China ("AFSL"). The AFSL establishes the regulatory framework for foreign persons, both legal entities and individuals, acting against China's national interests and expands the scope of penalties and obligations. For foreign companies…

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Why liquidating your company is essential for foreign investors?

Foreign investors may decide to close their China operations for various reasons. According to the relevant laws, rules, and regulations, closing operations in China involves dissolving and liquidating the company. Abandoning a company without completing the legal requirements can result in serious penalties for both personnel of the company and the company. Specifically, the personnel…

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Tax Alert: Individual Income Tax Reforms

On 1 January 2019, reforms in China's Individual Income Tax (“IIT”) were effective. IIT reforms ease tax burdens for lower-income earners and provision higher taxes for high-income earners – both foreign and domestic individuals. For foreign employees in China, further IIT changes from 1 January 2022 shall heavily impact the net salary. Effective from 1…

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China: Increased domestic demand paves ample opportunities for foreign investment

China offers multiple opportunities for foreign investors. In the 14th Five-Year Plan 2021 – 2025 (‘Five-year Plan), approved by the National People’s Congress of the People's Republic of China on 11 March 2021, a new economic model termed "dual circulation" was established. Dual circulation is a two-fold plan to stimulate domestic growth and consumption through…

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