China company equity transfer service
Hotline: 86-755-82147392, Email:info@citilinkia.com
Foreign investors often rely on home-country consultants to advise them on China’s business and tax regulations, as well as on how to structure the business. It is also common for investors to use the services of inexpensive local Chinese consulting firms 。
ATAHK Group Limited is an expert in corporate formation, trademark registration and all the follow-up business-related activities. ATAHK was set up in Hong Kong in 2000. With ten years' development, the group has established a sound service network worldwide for the small and medium-sized enterprises, all the services are business-orientated and solution-orientated.
many of which do not provide an international standard of service. Such firms often only provide the most general information about Chinese law and regulations for business and tax planning purposes. This approach can result in a host of problems once business operations are underway
Parent company management fees A second common error occurs when the parent company of a WFOE charges management fees to the WFOE for services rendered, such as IT and accounting support. Management fees are allowed but they incur a 10% withholding tax that must be withheld by the WFOE at the time of paying an invoice. Furthermore, these fees are not allowed as expense deductions when the WFOE files corporate income tax. In short, management fees are taxed twice. However, if such cross-border services are set up and managed correctly using properly drafted service agreements, the double-taxation situation disappears.
Careful planning is the answer The areas highlighted above only scratch the surface of the problems that foreign investors may face. Others include taxation, transfer pricing, and compliance with business regulations; the inadvertent creation of permanent establishments; and the challenge of setting up and maintaining proper accounting records.
Such planning is best conducted with trained professionals who can provide an international standard of service and who truly understand the complexity of China’s business and taxation laws. The benefits of this will far outweigh the initial costs, and sound planning will always improve the odds of business success.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com