Month: December 2018

China banking: non-financial institutions required to report large transactions from 1 January

On 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…

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China tax alert: Individual Income Tax — special additional deductions

The 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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China business: corporate seals explained

In practice, the corporate governance of a company in China is established in the utilisation of a company’s corporate seals and company seal policies. The corporate seal, often called a "chop", represents an unlimited power of attorney vested in the holder of the corporate seal(s). Once the seal is affixed to a document, the company…

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China workplace: the importance of your employee handbook

Clear, legitimate and consistent internal company policies are an essential aspect of employee management tools in China. Whilst the labour contract governs the labour relationship between the employee and employer, the internal company policy establishes fundamental provisions to manage the daily routine, responsibilities and obligations of the employees. In practise, the internal company policies are…

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