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Q&A

What is the significance of India's 1961 Income Tax Act (ITA)?

What is the significance of India's 1961 Income Tax Act (ITA)?

The Income Tax Act (ITA) states that all companies residing in India are subject to tax, whether their income is earned within the nation of India or abroad.  The government determines the residential status by the location from which a majority...

Q&A

What are a company’s options for repatriating funds from a Wholly Owned Subsid...

What are a company’s options for repatriating funds from a Wholly Owned Subsid...

Foreign companies with long-term goals in the Indian business environment often choose to establish a Wholly Owned Subsidiary (WOS), as it offers a company more flexibility, longevity and a stronger legal foundation.  All funds repatriated throu...

Q&A

What is a Limited Liability Partnership (LLP), and what are their options for re...

What is a Limited Liability Partnership (LLP), and what are their options for re...

Limited Liability Partnerships (LLPs) were first introduced in India in 2008.  LLPs are given legal entity status and limited liability of stakeholders.  They receive the advantages of a company, as well as the operational flexibilities of ...

Q&A

How is the current education market in China?

How is the current education market in China?

The education market in China has witnessed tremendous growth in recent years. Already worth RMB 1.6 trillion in 2015, the size of the education market is estimated to nearly double to RMB 3 trillion by 2020, thanks to the rising middle class. Chines...

Q&A

What is the main challenge that foreign investors might face when entering China...

What is the main challenge that foreign investors might face when entering China...

Even though there are myriad of opportunities in China’s education industry, the state government has been rather suspiciousof foreign participation in this particular industry. This is mainly due to how closely intertwined it is with Chinese i...

Q&A

Despite rigid government controls over investment in the education industry in ...

 Despite rigid government controls over investment in the education industry in ...

Certain areas in education in China are encouraged and benefit from preferential policies. Vocational school is one example. As China is seeking a growth model that demands skilled labor, the state government is spending heavily into the development ...

Q&A

How can foreign companies invest in China’s education market?

How can foreign companies invest in China’s education market?

There are four main models that foreign companies in China can use to circumvent the restrictions posed by the country and penetrate its education market, with the first one being setting up self-owned pre- and K12 international schools for children ...

Q&A

Can foreign investment in China’s education industry profit from its operation...

Can foreign investment in China’s education industry profit from its operation...

Education in China is deemed as public cause, and China has therefore been reluctant to privatize the sector and has placed bans on the for-profit activities of educational institutions. But there are discrepancies across different pieces of legislat...

Q&A

What is the impact of China’s NGO laws on the education market and how should ...

What is the impact of China’s NGO laws on the education market and how should ...

China’s newly released NGO Law greatly differs from that of western countries. It is widely seen as part of President Xi Jinping’s efforts to restrict and control organizations whose interests are not in line with those of the Chinese Com...

Q&A

What are some potential risks of China's transfer pricing environment?

What are some potential risks of China's transfer pricing environment?

Although China's transfer pricing legislation has developed over the past 20 years, the country's transfer pricing administration is still considered to be very strict. Chinese tax authorities require taxpayers to make a related party filing in conju...

Q&A

According to Chinese tax law, do foreign businesses need to prepare transfer pri...

According to Chinese tax law, do foreign businesses need to prepare transfer pri...

According to China tax law, taxpayers who meet certain legislative requirements must prepare annual transfer pricing contemporaneous documentation, which includes a transfer pricing study. Taxpayers who don't meet the requirements are not legally req...

Q&A

What is the importance of inter-company agreements between overseas related part...

What is the importance of inter-company agreements between overseas related part...

In previous years, Chinese tax authorities primarily focused on taxpayers’ transfer pricing issues with respect to their main business operations. However, authorities have recently been paying closer attention to taxpayers’ single relate...

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