KLR & Dezan Shira China Update Mar 2014 Boston
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Legal and Tax Aspects of Doing Business in China Presented by Sabrina Zhang, National Tax Partner and Regional Manager, Dezan Shira & Associates Learn about the latest changes in the legal and tax environment in China and their impact on foreign businesses. This seminar gives you the US and China perspective on how to structure tax-efficient entities to invest in China and helps you understand what constitutes a permanent establishment in China and managing the related tax exposure. It will cover the basics on repatriation of profits and what the indirect taxes in China are – understanding VAT, custom duties and business tax.
Transcript of KLR & Dezan Shira China Update Mar 2014 Boston
- 1. CHINA LEGAL AND TAX UPDATE Presented by Sabrina Zhang, Partner, Beijing office March 2014, Boston
2. AGENDA Where is China Today Opportunity For Growing Establishing China Business Recent Key Regulatory Updates Profit Repatriation Cross Boarder Transaction and PE Risk van www.dezshira.com 2 3. Where Is China Today? 4. No. 1 Country Population: 1.35 Billion No. 2 Total GDP in 2013: USD7.3 Trillion No. 1 United Nations FDI Attraction Index Rank No. 1 Total Exports: USD1.9 Trillion No. 2 Total Imports: USD 1.66 Trillion Economic Snapshot 2014-3-27 www.dezshira.com 4 Fact Numbers 5. 1911 1981 2011 Where is China today? 2014-3-27 www.dezshira.com 5 6. Economic Snapshot 2014-3-27 www.dezshira.com 6 Chinese Real GDP Growth: 1979-2013 Source: IMF. Note: * Data for 2013 is the IMFs projection made in July 2013. 16 14 12 10 8 6 4 2 0 7. Economic Snapshot 2014-3-27 www.dezshira.com 7 Annual FDI Flows to China: 1985-2012 ($ billions) Source: United Nations Conference on Trade and Investment and Invest in China. Note: Excludes FDI in financial services. 40 120 100 80 60 40 20 0 8. Economic Snapshot 2014-3-27 www.dezshira.com 8 Major Recipients of Global FDI Inflows in 2012 ($ billions) Source: United Nations Conference on Trade and Investment. Note: The United Nations data on Chinas FDI inflows differ from Chinas official data 9. China: Projected growth pattern assuming steady reforms and no major shock Indicator 19952010 201115 201620 202125 202630 GDP growth (percent per year) 9.9 8.6 7 5.9 5 Labor growth 0.9 0.3 0.2 0.2 0.4 Labor productivity growth 8.9 8.3 7.1 6.2 5.5 Structure of economy (end of period, %) Investment/GDP ratio 49 42 38 36 34 Consumption/GDP ratio 47 56 60 63 66 Industry/GDP ratio 46.7 43.8 41 38 34.6 Services/GDP ratio 43.1 47.6 51.6 56.1 61.1 Share of employment in agriculture 36.7 30 23.7 18.2 12.5 Share of employment in services 34.6 42 47.6 52.9 59 Economic Snapshot 2014-3-27 www.dezshira.com 9 Sources: NBSC and DRC. 10. China in 1992 Av. age of worker: 23 GDP growth rate: 12-14 % Employment by SOEs: >60% Ranking by Nominal GDP: 11th China in 2012 Av. age of worker: 37 GDP growth rate: 7.9% Employment by SOEs:
