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China's New Transfer Pricing Rules

Posted by PTL Group
PTL Group
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on Friday, 02 December 2016
in Business in China

On the 13th of July 2016 China's State Administration of Taxation (‘SAT’) released Bulletin 42 that contains the new transfer pricing documentation rules. Since it will have a far-reaching impact on taxpayers, it is of great importance to be aware of the content and effects of these (partly) new rules. In principle, all multinational companies engaged in cross-border, related-party transaction can expect to be significantly affected by the transfer pricing documentation requirements in Bulletin 42. An exception has been made for multinational companies that are engaged in purely domestic related-party transactions.

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HR Management Can Be Tricky in China

Posted by PTL Group
PTL Group
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on Wednesday, 23 November 2016
in Business in China

Interview with PTL Group HR & Admin Manager--Jasper Zhang

Jasper Zhang, a professional HR and Admin expert, joined PTL Group in 2011. Jasper has intensive experience in recruitment, HR management, payroll, KPI evaluation and various admin and mass layoff projects.

Q: What do newcomers and foreign companies coming to China need to learn before they start to hire employees here?

A: I think that there are two things foreign companies need to learn before they start to recruit their local employees: the Chinese Labor Contract Law and the C&B (Compensation & Benefit) system. For the C&B system in China, foreign employers should keep in mind that, conventionally, Chinese employees will always ask for something more than gross salary, e.g. a transportation allowance. So when checking with a Chinese candidate what their current income is remember to also ask about the salary package on top of the gross salary. In addition, you also need to understand the social benefits and housing system in China. By doing so, you will understand the total employer cost to you to hire this candidate.

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Termination Terms under the Chinese Labor Contract Law

Posted by PTL Group
PTL Group
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on Wednesday, 23 November 2016
in Business in China

There are several forms needed to end a labor contract in China and each one of them has its own set of terms and rules; how the employer can end the contact, how the employee may quit, and how the severance payment should be calculated. These are some of the issues we have included in this brief guide to help you assess the termination terms in Chinese employment contracts.

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WFOE SET-UP IN CHINA

Posted by PTL Group
PTL Group
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on Wednesday, 23 November 2016
in Business in China

CHANGES IN REGULATION

Doing business in China is becoming easier and more appealing for foreign companies now that the WFOE set-up process has been simplified.

In early September a new set of rules were released to ease the burden on the business environment within China by reducing bureaucracy and increasing transparency. The rules specifically support Foreign Invested Enterprises (FIEs) and took effect from October 1st 2016. Among the amendments in the law, it was decreed that Ministry of Commerce (MOFCOM) approval will no longer be required; instead only online filing will be needed. However it is important to note that this will only apply to those businesses not listed on the negative list.

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Cybersecurity Law in China

Posted by PTL Group
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on Wednesday, 23 November 2016
in Business in China

In July 2015 the National People’s Congress (NPC) proposed the first draft of a so called Cybersecurity Law. This year, just twelve months later, the second draft was submitted. Many global companies, especially those operating in the technology sector, are concerned about the passing of this law because they believe it will limit their operational powers within China. One reason, certain business operators say, is that with this law coming into force, the Chinese government would have greater powers to monitor and block any online content they perceive to be a threat. In addition to this, those concerned about the law are worried about the government, as well as various other parties, gaining more insight into foreign business’s data.

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