US Subsidiaries: Beware of Surprise Tax
Posted by Nina Wang on March 22, 2022
If you're a foreign investor, it's important to understand the status of U.S. stock to predict your company's tax responsibilities when making deals and avoid any surprises on your tax bills. Here's a quick overview of tax withholding requirements and exceptions to be aware of that may impact your transactions in the U.S.
Funding US Subsidiaries: Equity vs. Debt
Posted by Nina Wang on February 7, 2022
Many start-up companies in the U.S. owned by foreign entities have trouble getting external funding in the early stages of growth. It is typical for these foreign-owned businesses to receive funding support from a parent company that will use a combination of equity and debt. It is important to understand the differences between equity vs. debt since the classification will have a direct tax impact on the tax returns of the U.S. company.
How to Bring Profits Home Without Any Hassle
Posted by Nina Wang on November 10, 2021
China’s strict foreign exchange control has been a common concern among many foreign investors. Understanding the common ways to repatriate profits from China and the pros and cons of each method will help foreign investors bring profits back to their home countries and avoid unpleasant surprises.
Important Filing Requirement for Foreign-Owned U.S. Companies
Posted by Nina Wang on February 19, 2020
The last thing any business wants to receive is an audit notice from the Internal Revenue Service (IRS). Your first reaction will naturally be panic or fear. So, what protective measures can a business or business owner put in place?
The New Foreign Investment Law
Posted by Nina Wang on July 16, 2019
In response to international criticism about China’s openness to foreign businesses and an attempt to attract more foreign investors to expand their businesses to China, the National People’s Congress passed the Foreign Investment Law of the People’s Republic of China (Foreign Investment Law) on March 15 2019, which will come into force on January 1, 2020.
How to Respond to the US-China Trade Friction
Posted by Nina Wang and Tim Hilligoss on January 29, 2019
The year of 2018 was essential to the world’s two greatest trading nations: the United States and China. Throughout 2018, the Trump administration proposed and launched a series of policies imposing additional duty rates on a wide range of products imported from China. China retaliated immediately by publishing a list of products imported from US as targets for an additional 25% tariff. This trade friction is sweeping worldwide and has significant impacts on businesses.
Impacts of the New China IIT Law
Posted by Nina Wang on January 28, 2019
On August 31, 2018, China passed the Draft Amendment to the Individual Income Tax Law (IIT Law), which is the most significant revamp in the past 38 years. The amendments will have a significant impact on foreigners living in China. The following is an overview of the key changes that may affect individuals in the global mobility arena.
China Released Tax-Reduction Measures
Posted by Nina Wang on January 10, 2019
In the past few months, China’s Ministry of Finance (MOF), State Administration of Taxation (SAT), and other governmental agencies released various new “Circulars” to the current Chinese corporate tax law. Most of these tax reduction measures took effect January 1, 2018 in order to support entrepreneurship, innovation, and the development of both high technology enterprises and small and mid-sized entities (SMEs).
China’s Reduced VAT (Value Added Tax) Rates
Posted by Nina Wang on August 28, 2018
Value Added Tax rates in China have been lowered, which is expected to save businesses 240 billion yuan a year.
High and New Technology Reform in China
Posted by Nina Wang on September 12, 2017
On January 29, 2016, the Chinese tax authority announced the amended administrative approval measures (Guokefahuo, 2016-32) for High and New Technology Enterprises (HNTE) to …
Five Questions Answered about Expat Individual Income Tax in China
Posted by Nina Wang and Tim Hilligoss on July 25, 2017
As a direct result of globalization, there is an increasing amount of foreigners working in China. It’s important for a foreign person to know …