Dezan Shira Presents in EU Chamber Event on China’s Tax and Accounting Updates in 2016

On November 29^th, Maria Kotova, Manager from Dezan Shira & Associates’ Shanghai office, presented to the GMs and CFOs of the Changzhou International Manager Forum. The forum was hosted by the EU Chamber Nanjing under the topic of Tax and Accounting Update 2016: What SMEs Need to Know.  During the event, attendees had the chance to hear in-depth analysis to some of the hottest topics in China’s taxation, including China’s VAT Reform and the new Transfer Pricing regulations.

In her presentation, Maria discussed the recent changes in China’s political and economic landscape that have led to the need for updates in tax and accounting regulations. She also gave a detailed explanation on how the VAT deduction policy functions under the reformed VAT system and how the reform may impact the management of company’s China operations, especially for those involved in cross-border services. This introduction was followed by a case study on how a company chose between VAT exemption and zero-rated VAT when its subsidiary in Shanghai assisted the overseas headquarter to move money out of China.

After that, Maria covered the implementation of the new Transfer Pricing policies based on the concepts of Base Erosion and Profit Shifting (BEPS). Maria’s three most important tips to managers whenever new taxation and accounting policies are released were:

1. Carry out a self-check to see if conditions of the new rule apply
2. Get started as early as possible
3. Opt for an experienced consultant’ when needed

After the presentation, Jenny Liao, Senior Manager of Dezan Shira & Associates’ Corporate Accounting Services joined for the Q&A session to answer all the technical questions raised by the audience.

You can find out more by accessing the presentation slides on our Knowledge Sharing Platform. Accessing the slides requires a free Dezan Shira or Asia Briefing account. If you don’t already have an account, please register here.

You can also learn more about the VAT Reform and Transfer Pricing in China, by reading our publications Evaluating China’s VAT Reform and Transfer Pricing in China.

For a consultation for advice on tax structuring and transfer pricing in China, please contact the Tax and Accounting Professionals of Dezan Shira & Associates at jenny.liao@dezshira.com or maria.kotova@dezshira.com.

Maria Kotova is a Manager at Dezan Shira & Associates’ Shanghai office. She advises clients on corporate establishment, taxation and legal issues for their investments in China. Her work often includes analysis on corporate tax structuring, equity transfers, profit repatriation issues, analysis of legal and tax implications for setting up a business entity, and individual income tax optimization review.

Jenny Liao oversees the corporate accounting services department of the Shanghai and Yangtze River Delta offices of Dezan Shira & Associates. She specializes in China’s accounting, reporting and taxation systems. Prior to joining Dezan Shira & Associates, Jenny worked as an associate director at a Singaporean listed accounting firm for nine years.