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What are the benefits of converting a Representative Office into a Wholly Foreign-Owned Enterprise?
Q&AConversion is one of many options for business restructuring in China. It can be especially beneficial for companies concerned with the tax liability and limited business scope of their Representative Office (RO). A Wholly Foreign-Owned Enterprise (WFOE) can be more tax efficient than an RO. Furthermore, if the WFOE’s services to overseas companies fall under specific sectors, the company can apply for a VAT tax exemption status.
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