Blog Focus China

Increased Liability Risks for Directors in China: A Comprehensive Guide with Numerous Examples

The recent changes in Chinese corporate law mark a significant shift in corporate governance and establish new, stricter standards for directors. This comprehensive guide sheds light on a variety of scenarios in which directors must now exercise increased caution to avoid personal...

Chinas NEW Company Law! What you need to know!

266 articles, this will be the lengths of the new Chinese company law. The current version with 218 articles in total will get a full make-over with over 70 articles being added or substantially revised. As this is the first...

Chinas new company law 2024 and liabilites – why the Supervisor can still be useful

Even though underestimated many times, the Supervisor could play a crucial role in the performance of a Chinese business. Being on an equal level of communication with the management comes with many plus points. The new company law brings profound...

Employer Gift-Giving in Germany and China Explained

Christmas season is around the corner, and many companies are gearing up to prepare Christmas presents for their employees. Before diving into the festive spirit, it's crucial for a company to pay attention to certain aspects in advance to avoid...

Cross-border data transfer made easy now: The CAC Standard Contract

Previously, the transfer of cross-border personal data was challenging, whether it was conducting a CAC security assessment or certifying personal data. Both processes involved high costs, significant administrative burden, and long waiting times. However, since June 1st, 2023, the transfer...

Chinas E-Fapiao

In the operations of modern enterprises, invoices play a pivotal role. With the evolution of technology, the traditional process of obtaining paper invoices from the tax bureau has transformed. The Golden Tax IV system has ushered in a new era...

China shortens the negative list again

In a recent step further in opening up the Chinese market, the National Development and Reform Commission (NDRC) and the Chinese Ministry of Commerce (MOFCOM), announced a shortened “Negative List” on June 30th, 2019. This list is known to govern...

China’s Cryptocurrency and Blockchain Regulatory Environment

China's cryptocurrency market - We give you an overview of legal regulations and tax implications in terms of Bitcoin-related business. (more…)

Legal update China: new laws and regulations in 2019

Regulatory change often comes quickly in China – and the year ahead will be no exception. Some major legal changes already came into effect on January 1st, 2019, whilst others are still in the pipeline. (more…)

Data Protection in China

On 1 May 2018, new standards will come into force that further clarifies the data protection rules of the Cyber Security Act. (more…)

Accounting in China

The Chinese Generally Accepted Accounting Principles (China-GAAP) are similar to the International Financial Reporting Standards (IFRS), but differ from the American accounting system (US-GAAP). Most foreign companies are unaware of these differences, and are, therefore, running the risk of non-compliance....

China’s New Point System for Expats

On 9 September 2016, the State Administration of Foreign Experts Affairs published the reform of the current work visa system for foreigners in China. The changes will merge the various regulations for foreign specialists with the normal application procedures. The...

The Annual Compliance Review – Audit in China

The deadline for the Annual Compliance Review in China is on 31 May. Although it seems that there is still a long time until the deadline, there is an incredibly huge amount of work to do before you can hand...

China: Transfer Pricing Regulation Update

On 13 July, the State Administration of Taxation issued a notice related to the long-expected adjustments in regulations of transfer pricing. With the announcement [2016] No.42, the previously valid “Implementing Measures for Special Tax Adjustments (for Trial Implementation)”, (Guo Shui...

Introduction to the United States tax compliance act of foreign accounts

1. What is FATCA? The Foreign Account Tax Compliance Act is a U.S. tax law that was enacted in 2010 – Final U.S. Treasury regulations on FATCA were issued on January 17, 2013. The regulations launched on July 1, 2014,...

New Chinese-German tax agreement –

The State Administration of Tax (”SAT”), has released Tax Circular No. [2016]37 and the Interpretation of double agreement on taxation between China and Germany ("DTT") on 16 June 2016. Tax circular 37 informs the new DTT will be in effect...

Work in Germany: Getting a German Work Permit

Do I need a visa to work in Germany? This article explains who and how you can apply for a German work permit (more…)

Chinese Investors’ Interest in Germany’s Hidden Champions

It is no secret that Chinese investors tend to have an appetite for Germany’s small and medium-sized companies. We explain why Chinese companies are so interested in Germany's Hidden Champions. (more…)

A NEW MILESTONE FOR ECOVIS BEIJING: HANNOVER MESSE 2016

After our first Hannover Messe (HM) has come to a successful end, we are looking back at one of the world’s most important industrial trade shows. The first HM was organized in 1947 as a competitor to the Leipzig Trade...

New Plan for German-Sino-Hi-Tech-Park in Heidelberg

On May 2nd, 2016, representatives from the Heidelberg and the Beijing District of Haidian have signed a mutual cooperation agreement.  The agreement covers areas of research and development and to set up a joint German-Sino-Hi-Tech-Park. (more…)

New Tax Regulations for Cross-Border E-Commerce

In March 2016, the Chinese government issued two new regulations, which have changed the taxation of imported products bought online from businesses abroad (B2C) via e-commerce platforms. Previously, cross-border online purchases for personal use were mainly treated as individual postal...

Investment Opportunities in Industry 4.0 – Industrial Revolution “Made in Germany”

After the mechanization, the electrification and the digitalization of production, the latest industrial trend is made in Germany: Industry 4.0. But what does Industry 4.0 actually mean? What is the status quo? And what are the opportunities for foreign investors?...

Chinese Work Visa for Foreigners

Foreigners, especially those that intend to work in China, often face the question of which visa type to apply for. Since the Chinese Central Government implemented new visa regulations in September 2013, the complexities of the application process for work...

Mutual dependence between China and Germany? Part 2

In the first part of this article we explained the mutual dependence of China and Germany, it's historic origins and recent challenges. Please click here to read part 1 of this article. The Chinese government is striving to establish China...

Mutual dependence between China and Germany? Part 1

Glory past, dusty future? Starting from the Chinese economic reform under Deng Xiaoping in 1978, the Chinese economy has grown at an incredible pace. It established itself as a key economic driver and particularly in the wake of the global...

Chinese Foreign Direct Investments in the Heart of Europe

Chinese foreign direct investments expanded rapidly over the last decade. From 2005 on, Chinese foreign investments added up to almost 3,5 trillion US Dollar in 2015. This development is predicted to persist and even speed up over the next few...

Summarized changes for you implied in the business tax to value-added tax changes

As had been shared earlier this month once by our Ecovis Beijing office, Premier Li Keqiang on 5 March, introduced the government report and with it the announcement that value-added tax (VAT) is going to completely replace business tax (BT)...

ECOVIS in Shanghai and Taicang qualified to review investors’ documentation interested in China’s financial leasing industry

Throughout China’s implementation of the 11th and 12th 5-year-plan the country was seeking to reform and develop its short-term and long-term financial leasing system so as to let the pawn industry play an active role in meeting financing needs of...

From April 1st: Reduced Tax declaration periods for Small-Scale & Low Profit Taxpayers

The State Administration of Taxation (SAT) Announcement No. 6 of 2016 on "Reasonably Reducing the Tax Declaration Times for Taxpayers " defined that small-scale VAT taxpayers as well as small-scale enterprises shall only make quarterly payments of VAT starting from...

VAT Reform to be Completed in May 2016

During the annual National People’s Congress meeting on March 5, Premier Li Ke Qiang announced in his speech of the government report that the VAT reform will cover the last few industries as of May 1st, 2016.  The main points...

Tax reduction aims at boosting service trade

China attempts to increase the service and merchandise trade by facilitating access for overseas companies and by providing a tax reduction for technology providers. (more…)

How to set up a WFOE in China – the six most important steps

A WFOE is the most popular legal form for foreign businesses in China. Here are the most important steps for setting up your own Chinese company. (more…)

How to buy real estate in Germany?

Real Estate in Germany is attractive for foreign investors because of its long-term stability and balance of risk and return. ECOVIS Beijing helps you to get your own German home. (more…)

Important things you need to know about the Chinese Labor Law – Part Two

This is the second part of our two-part article series "Important things you need to know about the Chinese Labor Law". (more…)

Tax update – VAT (Value Added Tax) Reform to be Completed in May 2016

During the National People’s Congress meeting on March 5th, Premier Li Keqiang held a speech on the government report. He announced that the upcoming VAT reform will cover the last few industries which were not included yet. The main points...

Important things you need to know about the Chinese Labor Law – Part One

The labor law of the People's Republic of China (PRC), which has been in effect since 1995, and the newest edition of the labor contract law, in effect since 2012, are now also regulating employment relationships in China. (more…)

China: 2016 will bring an increased focus of authorities on transfer pricing and tax-avoidance

As ECOVIS Ruide was covering last year in our March issue of the our newsletter, on March 18th, 2015 the State Administration of Taxation (SAT) announced a new regulation concerning Enterprise Income Tax (EIT) Issues. Specifically the Disbursement of Expenses...

Tax deductibles of R&D expenditures in China

The “Law of Enterprise Income Tax” and its “Implementing Regulations” provide that the R&D expenditures incurred for the purpose to develop new technologies, new products and new crafts, can be subject to 50% more additional deduction after being deducted in...

Accelerated Depreciation of Fixed Assets

According to the decision of the State Council on September 17, 2015 the Ministry of Finance and State Administration of Taxation jointly issued the “Circular on Further Improving the Enterprise Income Tax Policies relating to the Accelerated Depreciation of Fixed...

Individual Income Tax – Part Two

This is the second part of our two-part article series on individual income tax (IIT) in China. In the first part we gave an overview on how individual income tax liability is determined for individuals in China. In this part we...

Individual Income Tax – Part One

In this series of two articles we would like to share some information about a topic we deal with in our consulting work on a daily basis: Individual income tax. This affects every expat living and working in China on...

Further Internet Restrictions for Foreign-Invested Companies

The Internet can be a tricky place to navigate in China. What is allowed, what is not allowed, and what may be allowed is constantly changing. Especially online business faces an increasing and evolving set of internet restrictions. Most of...

The ultimate VISA guide for Germany – all you need to know

A Step by Step Guidance on investing in Germany How to apply for a German Visa and what type is needed (more…)

Hong Kong, a transitional step into China?

Is Using Hong Kong to enter the Mainland Chinese Market a Good idea? Considering your different options of entering the Mainland Chinese market? Not sure if you should be using a third jurisdiction like Hong Kong? Well let us break it...

Update: To which extent can international companies operate in China without being forced to pay taxes?

Update: To which extent can international companies operate in China without being forced to pay taxes? Service provision and product order without having an office in the P.R.C. (more…)

Taxlink experts are discussing China´s tax system and economic growth

In the online-workshop China´s Tax System and Economic Growth, the tax and law experts Erich Chai, Kristina Koehler-Coluccia, Steve Dickinson and Grace Shi came together to discuss on what in their opinion are the greatest issues for enterprises which are...

Update: Import & cross border payment solutions with 3rd parties in China – A Case Study

Companies importing products to China often face a complex set of payment rules. We did a case study about a previous clients issues cencerning cross border payment. (more…)

Update Infographic: Tax Burdens Around The World

Are you living in a tax paradise? This tax burden cheat sheet, made in collaboration with ECOVIS offices worldwide, gives an overview of the amount of deductable expenses, income taxes, social security and other taxes around the world. Find out...

Intellectual Property

What foreign companies need to know about the Chinese law! The following article explains the Chinese legal framework and points out what you should know as a foreign company to secure your intellectual property appropriately in the long run. (more…)

IIT Update

Don´t miss the deadline! Prepare now! Starting form 2006, individuals whose annual income exceeds RMB120,000 will be required to file an annual tax return in the local tax bureau. (more…)

Development Zones in China

China´s Development Zones are playing a key role in the rise of China´s economy. Its time to have a deeper look into their benefits for foreign Investors. (more…)

VAT in China Part 4

VAT exemption for intercompany contracts When a foreign invested company in China is lacking on money, the foreign headquarter often would like to transfer cash in order to keep the liquidity. However, what sounds like an easy bank transfer in...

VAT in China Part 3

The VAT reform in China: What has changed since 1st of August 2013? Chinas Value Added Tax (VAT) reform is executed since August 2013 everywhere In China. On services in the transportation sector and on so called modern services there...

VAT in China Part 2

Same as for the EU, in China apart of the selling of products, the import of products is also subject to VAT. In opposite to the normal VAT this so called Importation VAT is an excise tax which is subject...

VAT in China Part 1

The Chinese VAT system is similar in many aspects to most Western country´s VAT systems. Who is well familiarized with the international standards, often also knows the right procedure in the Chinese system. In both cases the VAT will be...

STARTUP HYPE IN CHINA

China is currently experiencing a startup hype. In this article we will update you about the recent government developments in China and analyze different types of possible investments in the startup sector. (more…)

Ministerpräsident besucht ECOVIS Beijing Office

Hoher Besuch am Rande der Eröffnungsfeier des neuen German Centre im DRC Gebäude. Im ECOVIS Beijing Office kam es am Donnerstag anlässlich des Besuchs der Baden Württembergischen Wirtschafts-Delegation zu einer kurzen Bürobesichtigung durch hohe Wirtschaftsfunktionäre und Politiker. (more…)

ECOVIS Beijing Office Party

After the recent office move to the embassy area in Liangmaqiao, ECOVIS Beijing finally settled down in the brand-new office as the first tenant of the German Centre in the Diplomatic Office Building.  A legendary Office Party was the perfect...

Visa Update: Schengen and Investment Visa

This article gives a small update to the changing Schengen Visa regulations on 12th October and how to deal with it. Additionally, there are some general information about the Investment Visa and how to achieve it. (more…)

In 4 Steps to the Annual Compliance Review

Doing it right! How to do your Annual Compliance Review in 4 steps: The Annual Audit, the Annual Foreign Currency Filing, the Annual Tax Audit and Clearance and Report of Enterprise Information Publicity. (more…)

Deadlines for the Annual Compliance Review

As for the annual compliance review: it is not hard work but it needs to be done right. Do not see it only as an additional burden for your company. It is a great chance to do a small “health...

Abgabefristen für den Jahresabschluss auf einen Blick

Die Jahresabschlussprüfung ist nicht kompliziert, aber sie muss gemacht werden. Sehen Sie die Überprüfung nicht als zusätzliche Last für Ihr Unternehmen. Sehen Sie sie als Chance ihr Unternehmen einem Gesundheits-Check zu unterziehen. (more…)

Opportunities in China

Richard Hoffmann speaks at the event “Opportunities in China --- Matchmaking for companies in the field of biomedicine and cooperation in the area of the medical technologies” (more…)

Strategy workshop in Berlin

This autumn, September 4th and 5th was a big milestone for ECOVIS International. In Berlin, Germany, the partners of several international offices participated in a workshop on the future ECOVIS strategy for the next few years. The core target was...

Customs Update

Ecovis Beijing offers tax and legal consulting as well as accounting and auditing services for foreign invested enterprises (FIE) in China. During our work with some manufacturing and trading companies, we came across several issues our clients encountered in the...

AUDIT SEASON IS STARTING: Don´t underestimate Annual Audits in China

by Grace Shi The deadline for the Annual Audit in China is on the 31st of May. Although it seems there is still a long time until the deadline is due, there is an incredible huge amount of work that...

Management Structures of a WFOE Part 2

by Richard Hoffmann This is the second of an two part article series about the management structure of a Wholly Foreign Owned Enterprise(WFOE) in China. Read about the General Manager as well as about the Legal Representative and their duties....

The Management Structure of a WFOE

by Richard Hoffmann There are a lot of aspects one has to consider, when setting up a WFOE in China. Choosing a board of directors or better an Executive Director? A Board of Supervisors or only one? And what would be their duties?...

Payroll for Expats in China

Along side globalization and the advancement of technology, it doesn’t come as a surprise that international projects and global assignments have become a norm in today’s business world. In addition to the increase in international projects, an increase of the...

Articles of Association – Key terms for a Foreign Invested Company in China

The Articles of Association (“AoA”) are required in China and have to be approved by the authorities when setting up a Foreign Invested Company. Therefore it is important to know the functions of the AoA and how they can protect...

ECOVIS Beijing in Liangmaqiao

The steady growth of our business and therefore our team made a move to a bigger office necessary! On August the 3rd, ECOVIS Beijing finally moved from the Galaxy SOHO at Chaoyangmen into the new German Center Beijing in the...

4 Steps to liquidate a wholly foreign owned enterprise

Going through liquidation is a complex and often long lasting process. Failure to comply with existing regulations might result in severe legal consequences for shareholders. These are the most important steps to consider when closing a wholly foreign owned enterprise....

Someone else registered my trademark in China

In China you should register your trade mark before starting any operation. China operates a first to file policy, meaning if someone registers your trademark in China before you, it belongs to the earliest applicant and you have lost the...

Five reasons for outsourcing bookkeeping in China

Outsourcing your bookkeeping can help running your business more effectively and enables you to focus on the core competencies of your company. In addition, subcontracting a professional accounting firm for providing bookkeeping or payroll processing can increase your profitability, reduce...

Import & cross border payment solutions with 3rd parties in China – A Case Study

Companies importing products to China often face a complex set of payment rules. We did a case study about a previous clients issues concerning cross border payment. (more…)

ECOVIS AT AMERICAN BUSINESS UNIVERSITY’S PANEL DISCUSSION IN BEIJING

On Friday, 28th of July 2015, Manuela Reintgen, Senior Business Development Manager at Ecovis Beijing, was invited to speak in a panel discussion on the topic: business prospects and risks in China. With keen interest and curious minds, the group...

OVERVIEW OF CHINA’S SOCIAL SECURITY SYSTEM

China’s social security law was promulgated by the central government but its administration and specific details are governed by local authorities. For example, employer and employee contribution rates and caps for each benefit vary according to local jurisdiction and are...

Grace Shi in an Interview about China´s developing tax system with taxlinked.net

By Grace Shi,ECOVIS Beijing Last week Grace Shi, partner at ECOVIS Beijing, was invited for an interview by Taxlinked.net, an online platform for lawyers, accountants as well as trustees, which allows professionals to connect, interact, exchange knowledge, find solutions together...

One firm, one family

ECOVIS, a company where controversial ideas are encouraged! Under our new motto “One Firm One Family” the team of ECOVIS Beijing (on Friday the 19th) set out on a day of team & leadership workshops. Guided by two professional coaches,...

IIT, Social Insurance & Private Pension – Seminar in Tianjin

By ECOVIS Beijing On the 27th of May 2015, Ms. Manuela Reintgen of ECOVIS Beijing and Mr. Klaus-Peter von der Eltz of Expatriate Care Consult held a seminar on individual income tax (IIT), social insurance and private pension, in cooperation with the German Chamber of Commerce in Tianjin. (more…)

Cherry Picking, Paintball & BBQ – Company Outing 2015

By ECOVIS Beijing Cherry picking, paintball, zip-lining, go-karts, bumper cars and speed boats are just some of the activities our ECOVIS Beijing team enjoyed on our company outing on 2nd of June 2015. (more…)

3 Additional Free Trade Zones In China

In order to attract more foreign investors, China launched three additional Pilot Free Trade Zones (FTZs) in Tianjin, Guangdong and Fujian. (more…)

How to change a RO into a WFOE

By Richard Hoffmann Establishing a Representative Office (RO) is one of the easiest, fastest and cheapest ways of entering the Chinese Market. For certain activities a RO might be the right choice, for others however, it is a waste of...

Tax Update June – Notification on nation-wide Tax Audit Plan 2015

By Grace Shi, ECOVIS Beijing Notification on nation-wide Tax Audit Plan 2015 As a result of its national tax meeting the State Administration of Taxation (“SAT”) has recently published an internal notification for the nation-wide tax audit plan 2015. The...

How To Set Up a WFOE in China: The Most Important Steps

By Richard Hoffmann, ECOVIS Beijing When starting a business in China, many choices have to be made. One of the first tasks is to determine the entry strategy and decide on the legal structure. Do you want to enter China...

From Starbucks to the Skyline – 3 Years ECOVIS Beijing

By ECOVIS Beijing ECOVIS Beijing is celebrating its 3rd anniversary: Where we started, where we are now and where we are heading. (more…)

Seminar: Changing or Expanding Your China Business

Manuela Reintgen of ECOVIS Beijing, in co-operation with the German Centre Beijing, held a seminar explaining how to change a company’s legal structure and expand its operations in China. (more…)

Attention: Foreigners’ tax payments getting checked!!!

By Manuela Reintgen, ECOVIS Beijing China Tax authorities have put a focus on foreigners’ Individual Income Tax (IIT) payments! Beijing tax officials are currently conducting random checks on past tax filings and forcing companies to make self-inspections. (more…)

Buy Assets Now to Save Taxes – The New “Shortened Depreciation”

By Grace Shi, ECOVIS Beijing China By adopting the new shortened depreciation method, companies in certain industries can ease the financial burden of asset acquisition. (more…)

Tax Exemption Now Available for Companies with Annual Revenue of Up to 200,000 RMB!

By Richard Hoffmann, ECOVIS Beijing China Always paying too much taxes? China has raised the upper limit of tax exemption for small companies from 100,000 to 200,000 RMB total annual revenue. (more…)

Austrian Forum on Chinese Megatrends welcomes Richard Hoffmann

By Richard Hoffmann, ECOVIS Beijing Tomorrow, Advantage Austria, Austria's official trade promotion organization, brings together several Chinese business experts from Beijing, Hong Kong, Shanghai and Guangzhou to discuss what influence China’s booming economy will have on Austrian businesses. ‘Chinese Megatrends...

China’s Corporate Income Tax Update: What You Need to Know

By Richard Hoffmann, ECOVIS Beijing China Watch out! China’s new regulations on corporate income taxation regulate inter-company expenses. Learn how to manage payments from related companies to avoid paying too much taxes. (more…)

Seminar about Individual Income Tax, Social Insurance and Private Pension

By ECOVIS Beijing On the 17th of March 2015, Ms. Manuela Reintgen from ECOVIS Beijing and Mr. Klaus-Peter von der Eltz from Expatriate Care Consult held a seminar on individual income tax (IIT), social insurance and private pension, organized by...

Many businesses must renew their business licenses! Check the deadline for your company now

By Richard Hoffmann, ECOVIS Beijing Do you have to renew your business license? Here is everything you need to know about China's new format of business licenses. Recently, you may have noticed some differences in the business licenses. Below photos...

Less bureaucracy! No VAT General Tax Payer approval necessary

By Grace Shi, ECOVIS Beijing Do you hate bureaucracy? Learn how the changes regarding VAT General Tax Payer status approval and Special Red-ink VAT invoices will simplify your company’s VAT booking and filing. (more…)

Adjustment and Improvement of Tax Policies for the Merger and Restructuring of Enterprises

By Lun Wang, ECOVIS Ruide China The State Council promulgated the Opinions on Further Optimizing the Market Environment for the Merger and Restructuring of Enterprises (Guo Fa[2014] No.14) on March 24, 2014. With regard to the merger and restructuring of...

Taxation on equity transfers

By Richard Hoffmann, ECOVIS Beijing New rules on taxation of equity transfers. Do the new taxation rules affect you and your business? Read about opportunities and risks that you should be aware of. (more…)

Seminar Beijing: Annual Audit – Do’s and Don’ts from the Perspective of International Companies

By ECOVIS Beijing All foreign invested enterprises are potential subjects to the ANNUAL AUDIT. The annual audit has several purposes such as to assure tax compliance and to prevent fraud. Not only can an annual audit help you to reduce...

Articles of Association – 3 biggest mistakes to look out for

By Richard Hoffmann, ECOVIS Beijing Foreign investors tend to view the Articles of Associations as just a formality. They constitute a long term commitment and it is critical to establish them in a way that suits your needs best. Making...

The christmas tree looks great! ECOVIS Beijing

By ECOVIS Beijing A happy christmas celebration with colleagues, a tree and six self made ginger bread houses. Not only did we have lots of fun but also a lot of sweets to eat. The tree was decorated within seconds...