• +44 20 3286 8868
  • +1 747 212 0206
  • +86 21 2052 0623

Uncategorised

20 April 2018

Following our China theme for this week, here’s a list of the top 5 tax and finance mistakes to avoid in China. It’s based on an article written by the Shanghai team at WTS China, some of whom my boss / wife / LCN co-founder Xiaofang had the privilege of meeting in person earlier this week.

  1. Malpractice in VAT invoicing (including inputs as well as outputs)
  2. Disguising salary as the reimbursement of expenses
  3. Leaving a company dormant
  4. Abnormalities in the aging of accounts payable (APs), including failure to report APs to the State Administration of Foreign Exchange (SAFE) within 30 days of the import date
  5. Irregularities in non-trade payments to overseas parties, including failure to account for the relevant taxes

To read the full article, click here.

Perhaps we should add to that list 'Not having appropriate intercompany agreements to support intercompany charges'. Agreements are essential (rather than being just 'best practice') in order to obtain permission to remit funds over the prescribed minimum amount.

For an overview of our current range of services regarding intercompany agreements for multinational groups, click here.

Free insights

Get practical advice & insights on the Legal Implementation of Transfer Pricing for Multinational Groups

We won't share your details and you can opt-out any time. Learn more in our Privacy Policy

Article by
Paul Sutton
LCN Legal Co-Founder

Free Guide: Effective Intercompany Agreements for TP Compliance

ENQUIRE NOW