As the world’s second largest economy, China offers multinational companies (MNCs) rich business opportunities, abundant and productive workforce, increasingly mature infrastructure, and lucrative consumer markets. However, complex Chinese tax laws, heightened scrutiny by the Chinese tax authorities, and a sombre economic environment, have created a PRC tax landscape that has never been more challenging for MNCs.
The Chinese tax system is intricate and Chinese tax practices vary from location to location. It is critical that you properly manage the Chinese tax burden, fulfil compliance obligations, and take advantage of the tax benefits that you are entitled to. Other than the tax rules, various government branches routinely issue new regulations that often have a deep impact on cross-border tax planning. Failure to understand the latest regulatory development can create undue tax and business risks and affect the ultimate success of your China operations.