MSA Top Articles of 2019

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The year 2019 has been an important year for businesses in China as we have seen a lot of far reaching changes in finance and taxation as well as a trade conflict between the US and China. Also, in 2020 we anticipate several important reforms for foreign companies in China. We have compiled a list of the eight most important articles we wrote last year, covering interesting topics in 2019 and introducing subjects of increased importance for 2020.

Implications of China’s Individual Income Tax Reform : IIT Calculation, Itemized Deductions and Expat Allowance

In 2019, China released the country’s new IIT Law. The new Individual Income Tax (IIT) Law outlines procedures to claim itemized deductions, introduces a new IIT withholding method and announces reform to expatriate allowances.

China Cuts Taxes for SMEs and Low-profit Enterprises

China’s State Council introduced tax cuts for SMEs and low-profit enterprises. Among others, Corporate Income Tax (CIT) and Value Added Tax were cut for SMEs.

China VAT Reform : Implications of the 2019 Value Added Tax Reforms

China’s VAT reform continued with new Value Added Tax policies, such as lowering of China’s VAT rates in 2019, increased scope of VAT credits and the introduction of a VAT refund pilot scheme from April 1st of 2019 onward.

How Do Benelux Businesses Perceive the Chinese Business Environment? Results of the Sino Benelux Business Survey 2019 

The Sino Benelux Business Survey provides an overview of the performance, business sentiment and expectations companies from the Benelux in China.

China Cuts Pension Contributions for Employers Across All of China : Implications for Businesses

China has lowered employer contributions to the country’s Pension Fund. These significant reductions to employer social security contributions may be one the country’s most underestimated tax reforms in recent times.

China Corporate Social Credit System Mini Series 

The Chinese Corporate Social Credit System aims to create a self-regulating market by assessing companies based on ratings and compliance records. In our mini-series we discuss the underlying structure and mechanisms, how the ratings and blacklists work and the consequences for businesses of the Chinese Corporate Social Credit System.

Annual Audit and Compliance in China : Important Considerations for Foreign Invested Enterprises 

At the end of the fiscal year, all foreign companies must complete the annual audit and other annual compliance procedures as set out by the Chinese government.
The annual statutory requirements in China can be separated into the year-end statutory audit, annual Corporate Income Tax Filing and Annual Publication Report.

China’s New Foreign Investment Law : Changes and Implications for Foreign-Invested Enterprises 

The Foreign Investment Law will be implemented on the 1st of January 2020. The law is an effort to further reform the Chinese economy and aims to promote foreign investment by fostering fair competition, improve protection of lawful rights and interests of foreign investors and taking measures against forced technology transfers and trade secrets sharing.

The past year has again shown that in China the only constant is change itself. In 2020 we will continue to keep you up to date about the implementation of the new regulations and any changes in the Chinese business environment related to finance, tax and compliance. If you’d like to know more about any of the topics in the articles and how it may affect your China operations, do not hesitate to contact us.