China is the second largest economy across the globe with over 1.4 billion of population. Multi-National Corporations are more eager than ever to invest into China (China Inbound Investment) and/or doing business with business partners in China. On the other hand, Chinese Enterprises are eager to go overseas for Outbound Investment. One-belt-one-road initiative is just one of the focus of Chinese Enterprise.

Hong Kong has always been the platform to connect China and the rest of the world, no matter China Inbound and Outbound Investment. As such, it is important for examine the tax implications of both China and Hong Kong in your tax planning exercises.

Hong Kong is also part of Guangdong-Hong Kong-Macau Greater Bay Areas (GBA), which is the one of the areas with the strongest GDP growth in China. Being an international financial centre and closely situated in GBA, Hong Kong is in the best position to assist you to enter into China.

As one of our core services, our team comprises experienced tax experts in handling China-related tax and foreign exchange control matters and deal with local tax authorities in China.

How can we help?

Advisory on a tax-efficient group structure to invest into China (including Hong Kong and China Tax implications);

  • Advisory on a tax-efficient arrangements to transfer profits out of China in a reasonable manner (e.g., royalties, interest, dividend, services fee arrangements);
  • Advisory on the withholding tax implications on payments made by Chinese Enterprises to foreign enterprises and ways to reduce withholding tax via Double Taxation Agreement benefits; and
  • Transfer pricing as well as permanent establishment risk on the potential additional China Corporate Income Tax liabilities.

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