The tax and legal framework of the leasing business in China – An event by VDMA – with contribution of ECOVIS Beijing

On the 22nd of May 2014, the German Engineering Federation (VDMA) organized an event at the Saixiang Hotel in Tianjin focusing on the Construction Equipment and Building Material Machinery Industry in China. Various representatives of related companies came together to discuss the current situation of their industry and to share their experiences with one another. Ms. Manuela Reintgen (Business Development Manager) and Ms. Elizabeth Shi (Senior Tax Advisor) from ECOVIS Beijing were invited to participate as guest speakers.

The German Equipment and Machinery Industry experienced high growth rates in the years leading up to the global financial and European debt crises during which growth began to slow. The VDMA is, however, still optimistic about the future – an overall recovery is expected. The discussions at the roundtable also exemplified this optimism by initially pointing at a range of different problem scenarios such as huge overcapacity but later on explaining the moderate growth and increasing turnover compared to previous years that are currently being recorded.

After the roundtable came to an end, Ms. Li Hanbing from the Construction Machinery Rental Association (CMRA) gave her insights into the business of leasing in China after which ECOVIS Beijing explained the related financial, tax and legal aspects. Manuela Reintgen presented the legal part including issues to which the lessor and lessee need to pay attention; Elizabeth Shi then took over and presented the tax related aspects. The presentations were well received by the audience and we would like to thank the VDMA for the opportunity to speak and the platform to exchange insights.

with contribution of Brigitte Both (ECOVIS Beijing)