The new “Individual Income Tax Law,” which came into effect in 2019, stipulates that an individual who is domiciled in China or who is not domiciled in China but has stayed in China for a cumulative period of 183 days in a tax year is resident. By the provisions of the Law, a resident individual […]

Preface For the purpose of relieving the financial problem and stabilizing the business development, the tax authority has issued a series of tax relief and fee deduction policies during the first half year of 2023. These policies show the characteristics of continuity of tax preferential policy, targeting the stress of small scale enterprises and system […]

Preface Equity investment and loans are two different forms of investment investors may contribute to the invested enterprises with respect of repayment and calculation of return. Accordingly, tax treatment for both investors and investees for these two kinds of investment is different. For equity investment, the return is treated as dividends which can be exempted […]

Preface Nowadays，share incentive payment is commonly applied by listed and unlisted enterprises to motivate and retain employees. Regarding the tax treatment for this kind of payment, including individual income tax (“IIT”) for employees and corporate income tax (“CIT”) for the employers, we will have a brief review on tax regulation stipulation in this article. What […]

As response to the plan of the state council to build social credit system during 2014-2020, for tax credit system building, tax authority issued a provisional tax credit administration measures in 2014 and a series of documents during the following years to guide and define the implementation. In this article, we would like to briefly […]

For all enterprise registered with the government authority in China, a legal representative shall be designated. The name of legal representative shall be registered with the government authority and printed on business license. But what responsibility the legal representative shall take? This is a question often asked by legal representative of foreign-invested enterprises. In this […]