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 doing business in China.

According to the participants one of the greatest misconceptions is that foreign companies in China do not have to pay tax at all or that the Chinese tax jurisdiction is merely low, not well organized and thus neglectable. In fact it is not very high but still taxes have to be paid. This leads to tax problems since it is very unlikely, that companies slip through the Chinese tax administration net.

The very strict tax administrations can make companies suffer quite hard inconveniences. Especially if they make transactions with entities which are invested in the Cayman Island or the Seychelles, this may arise the Chinese tax administration´s interest and companies may be forced to provide detailed documentation.

Transfer-pricings in China became more and more important to foreign entities in recent years. The issue popped up five years ago when only very few companies had in mind how much contract work was connected to this field in order to not being challenged by the tax administrations. Nowadays however, companies are prepared much better.

At this point Grace Shi, senior partner of Ecovis Beijing strongly points out the rapid development, the Chinese tax administration is going through in the recent years. China is actually trying to establish a tax system which is more sophisticated and meets high-end international standards. International companies are therefore strongly advised to approach external experts since even the company´s CFOs often have problems distinguishing the current tax law from the previous one.

Read more information in the full discussion of the experts here.

If you are interested about tax and legal issues in China you are welcome to visit the taxlink website or contact our partner Grace Shi via email: grace.shi@ecovis-beijing.com.

	Grace Shi is a partner at ECOVIS Beijing China. She has over 12 years of experience in accounting, auditing, and tax advisory services in both international accounting firms and large Chinese corporations. She has an international MBA and a US Global Finance Master’s degree. Since 2001, she is a Chinese Certified Public Accountant (CPA) and, since 2002, a Chinese Certified Taxation Agent (CTA). Mrs Shi is one of the founders of ECOVIS R&G Consulting Ltd. (Beijing). She has perfect skills in written and spoken English and Chinese. For more information, please contact:  grace.shi@ecovis-beijing.com
Ecovis Beijing is the trusted tax and legal advisor of several embassies and official institutions in China. It specializes in mid-sized international companies and is focused on tax & legal advisory, accounting and auditing. If you’re interested in finding out more about tax and legal, don’t hesitate to sign up to our Newsletter, give us a call +49 (0) 6221-9985639 or contact us directly via  Beijing@ecovis.com .