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China - Looking Ahead (8th Edition)

  • Editorial

    China may have been in the headlines this year for its trade dispute with the US, but there is much more happening across the country's tax landscape than that.

  • China: Tax in the limelight

    The Year of the Dog in 2018 has been a remarkable period in China's continuing story of economic growth and transformation.

  • Checklist of hot China tax issues for MNEs in 2019

    In 2019, multinational enterprises (MNEs) should be alert for the following anticipated China tax developments.

  • One giant step forward in Chinese IIT reform

    China’s individual income tax (IIT) reform has finally been implemented. While it has brought benefits for some, others await further clarity from the authorities on the implications. Michelle Zhou, Jason Jiang, Murray Sarelius and Sheila Zhang outline the impacts of this major tax reform and key considerations for taxpayers.

  • R&D 2.0: Taking tax incentives to the next level in China

    A rapidly evolving domestic and international economic climate is pushing both the Chinese government and enterprises to accelerate their innovation efforts. To revitalise the country through science and technology, more tax policies have been introduced to support R&D-oriented enterprises. Bin Yang, Benjamin Lu and Liang Wu outline these exciting new developments.

  • Seeing the tax trees from the data forest – managing tax administration in the digital age

    China’s multi-year tax administrative modernisation programme is leveraging big data technology and a restructured tax authority for effective enforcement. Tracey Zhang, Fang Wei, Lilly Li and Anthony Chau explain how this increased collection efficacy is transitioning the tax administration to a more mature and reasonable approach to dealing with the ever more complex commercial issues.

  • When America squeezes – implications of US tax reform for China

    The passage of the US tax reform law ushered in big changes to the global tax landscape. Governments and businesses globally have since expended considerable efforts to understand and assess the wide-ranging impacts of these critical changes. Wade Wagatsuma, Xiaoyue Wang, David Ling, Shirley Shen, Koko Tang and Jennifer Weng, discuss the key changes and their impact on China.

  • In the eye of the storm – how does China act and react in times of trade tension?

    There has been rapid change in 2018 in the trade and customs space, bringing a multitude of challenges and opportunities for companies operating import and export businesses cross-border with China. Eric Zhou, Kevin Kang, Rachel Tao and Philip Xia describe the key challenges and opportunities faced by companies that operate global trade business with China.

  • Tax opportunities and challenges for China in the BRI era

    Chinese governmental authorities remain supportive of rational, well-ordered and healthy outbound investment. Michael Wong, Joseph Tam, Karen Lin, Cloris Li and Alan O’Connor look at key domestic tax and regulatory measures implemented to enhance the competitiveness of Chinese outbound investment on the global stage, including under the Belt and Road Initiative (BRI).

  • China FS sector opens up: Tax opportunities and challenges ahead

    Are you ready for the opening up of China’s financial services sector? Henry Wong, Chris Ge, Jean Li and Tracey Zhang look at the latest regulatory relaxation measures, and give insight on industry issues which foreign firms should be aware of before jumping on the bandwagon.

  • Coming of age – China’s leveraging of BEPS

    Following years of rapid change to China’s cross-border corporate income tax (CIT) rules and advances in enforcement effectiveness, a more measured approach has recently emerged, reflecting business environment changes and China’s evolved position within the global economy. Chris Xing, Conrad Turley, Grace Xie, and William Zhang, trace the latest trends.

  • Now that we got data, what are we gonna do with it? – TP challenges and opportunities

    China is consolidating and enhancing its transfer pricing regime. The State Administration of Taxation is strengthening its monitoring of multinational enterprises’ TP arrangements and has committed to the international cooperation agenda. Cheng Chi, Patrick Lu, Choon Beng Teoh and Kelly Liao discuss the impact on taxpayers.

  • Not-so-old wine, in a not-so-new bottle – perennial tax challenges for M&A

    John Gu, Chris Mak and Fiona He explore the key tax issues and considerations of China inbound M&A deals, especially in the education and real estate sectors, including practical challenges for cross-border transactions in these hot sectors, and how an investor can best get prepared.

  • A Sisyphean task? – Tax plays catch up with China’s rapid digitalisation

    The increasing size and sophistication of China’s digital economy, as well as the rapid expansion of Chinese digital economy enterprises into foreign markets, is highlighting a range of complex tax issues, and the importance of policymaker efforts to resolve them. Khoon Ming Ho, Conrad Turley, Sunny Leung, and Mimi Wang explore the issues.

  • Tax means business – Hong Kong’s tax policies to increase competitiveness

    Hong Kong has seen substantial changes to its tax landscape in 2018. Curtis Ng, Michael Olesnicky, John Timpany and Ivor Morris discuss Hong Kong’s tax changes for transfer pricing (TP) and research and development (R&D) aimed at enhancing Hong Kong’s competitiveness and driving its economic growth.

  • Implications of IFRS9 on financial instruments for tax in Hong Kong

    The adoption of IFRS 9 (financial instruments) in Hong Kong represents a substantial change to the financial reporting of banks. Its adoption could give rise to unforeseen tax implications during the transition and future periods. Darren Bowdern, Johnson Tee, Matthew Fenwick and Malcolm Prebble outline the potential tax implications in Hong Kong.

  • Taiwan’s forward-looking tax policies

    Taiwan refined its framework for taxing digital economy businesses in the past year, improved the tax rules for foreign enterprises operating regional logistics hubs, and updated transfer pricing (TP) provisions. Sherry Chang, Stephen Hsu, Hazel Chen, Ellen Ting, Lynn Chen and Betty Lee examine these important policy developments.

  • Pushing the digital frontiers of tax in China

    Drawing on China and international experience with the digitalisation of taxation, in particular as it relates to indirect taxation, Lachlan Wolfers, Vincent Pang, John Wang and Grace Luo chart out the possible future of tax rules, tax administration, and the tax profession itself.

International Correspondents