Essay # 2: Tax liability on China business operations of Indians
China is set to emerge as the worlds largest manufacturing and exporting country. The nation has displayed resilience in spite of the global economic crisis and their GDP has seen a consistent growth. Since November 2001, China has seen a rapid growth in foreign investment and trade with the country joining the World Trade Organization (WTO). The implications of which include reduced tariffs on certain products and phased introduction in market access to several otherwise regulated industries. The sectors that are now open to foreign trade include advertising services, freight forwarding agency services, inspection services, franchising and trade and distribution. A relatively more welcoming market
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In order to repatriate the profits, dividends and financial benefits, the Chinese entity of the business must provide receipts that serve as evidence that the firm has fully paid up their corporate income tax, an annual audit report has been carried out and the board has passed a resolution on the appropriate division of profits and dividends. Along with this, the Foreign Exchange Registration Certificate and a capital verification report must be handed in. A withholding tax of 10% is applied on the dividends from the profits, unless in the case of double tax treaties.
An Indian company having an establishment in China or based in China will be subject to Chinese tax on all income that is linked with the company’s Chinese operations. These tax rates are as follows:
The normal corporate income tax rate is 25%. However, special rates of 10% and 20% may apply to small scale companies if they meet the requirements. Both, businesses that have HNTE status and those engaged in encouraged business and are incorporated in certain regions of China get a 15% income tax
Dear Mr. Gaylord Bigmoney: Thank you for contacting me to review your investments and for advice on whether or not to purchase additional state and municipal bonds. Mr. Rich Broker has given you a couple recommendations about your investment portfolio. First, Mr. Broker has recommended that you take the cash presently invested in the Certificates of Deposits and purchase more state and municipal bonds. Second, Mr. Broker has recommended that you borrow an additional $800,000 on one of the unencumbered apartment houses, which would require you to give a Deed of Trust for security on the loan, and use the loan proceeds to purchase more state and municipal bonds. When Mr. Broker gave you these recommendations the rates were as follows: present
“The obstacles of the past can become the gateways that lead to new beginnings. ”-Ralph Bloom. Many chinese immigrants fought for their future,lives,and rights. Chinese immigrants were misunderstood because of their culture,looks,clothing styles,etc.
The Chinese Exclusion Act of 1882 and Alien Contract Labor laws of 1885 and 1887 did not allow laborers immigrates in to the United States. The general Immigration Act of 1882 impost a head. These immigration laws created the need for new FBI. The Chinese Exclusion Act was approved on May 6, 1882. It was the first law not allowing immigration into the United States.
Clients must keep records and books of accounts including cash book, sales ledger, purchases ledger and general ledger. Supporting documents such as invoices, bank statements, pay-in slips, cheque butts, and receipts for payments, payroll records and copies of receipts issued should be retained. A valuation of the stock in trade should be made at the end of the accounting period and the appropriate records maintained. Company should record sufficient to explain each transaction and to enable a true and fair profit & loss account and balance sheet to be prepared. At the end of the accounting period, a physical stock-take should be made to ascertain the quantity and the cost of the stock in hand or the cost of work in progress statements and
The Chinese Exclusion Act Citation: Lee, Erika. " Enforcing The Borders: Chinese Exclusion Along The U.S. Borders With Canada And Mexico, 1882-1924. " Journal Of American History 89.1 (2002): 54. Advanced Placement Source. Web. 8 Mar. 2016.
First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have
China’s Last Empire. The Great Qing. William T. Rowe. The Belknap Press of Harvard University Press, 2009. 360 pages including Emperors and Dynasties, Pronunciation Guide, Notes, Bibliography, Acknowledgements, Index, Maps and Figures.
• Are my tax and compliance obligations any better than mainland China? • How does ANZ manage the scale of the opportunity? • As a new entrant, is the FTZ a cost-effective way to conduct business? It is stated that Shanghai is likely to rival New York as a financial center and will serve as an international hub, (ANZ Banking Corporation, 2012).
Customers such as students or lower-class people will have a higher bargaining power since there is multiple back up choices of cheaper supermarkets such as Netto where they can shop. Therefore, before the launch of the online supermarket service, Irma’s customers’ bargaining power is high for low class people, students and people who don’t care as much as the high-quality or organic products; however as mentioned above, people who are wealthier and care more about the quality of the products will have low bargaining power due to the centralized product distribution control by
These taxes served as a large income for the government. Benn, Charles. China 's Golden Age: Everyday Life in the Tang Dynasty. Oxford: Oxford University Press, 2004. (pages 181-183)
However, HK plant would still be kept as a place for smaller size order and unexpected risky circumstances, which may occur in other locations. * * I agree with short term and long term relationship with HK and China. But I would like to add one more recommendation which is using HK and China based on the product categories -; HK vs. China Comparison HK China Production Manufacturing at twice the speed
There are different ways to enter the foreign market (except the direct and indirect export of the goods): wholly owned subsidiaries, merger & acquisitions, joint ventures, franchising/licensing agreements and minority investments. After determining the entry mode the company will choose the market and evaluate it to find the best way to enter it. The different forms of market entry strategies have advantages and disadvantages. Standardization of market operations and processes are more different if a company chooses merger & acquisitions and joint ventures, because first the partnerships need to be harmonization. These partnerships are valuable because of the partner’s knowledge about the local market.
The presence of market driver caused nations to trade internationally in the global marketplace. Different countries possess with different type of working place, masculinity and femininity. For example, Japan is a country that possesses the most masculine culture while Iceland is the most feminist country. Market driver has provided a stage for nations to conduct international trade. Meanwhile, nations are able to converge their cultures with other countries (for example, working attitude) as they have to learn and adapt to the culture of other countries in order to conduct international trade
Multinational corporations had brought numerous opportunity to developing country such as job opportunity, increasing guarantee at employment rate. It is benefited for developing country to improve the economy. According to Management development in international companies in China (Stephen T.K. Li, 1999), China is obtained 10% average annual by multinational companies and foreign companies create over 8 million job opportunity to China people, most importantly, China had a low employment rate before multinational companies enter into China. Consequently, the international companies are benefited to developing economy to developing
The author argue that China-Africa trade does not improve and sustain the living conditions of African residents, instead is it damaging efforts for Sub-Saharan Africa to improve their development. Lyons and Brown states that the increasing number of imports from China affect local businesses because China import cheap products and sell them at a lower price. Therefore, there is a competition, and this competition lowers the profit margins and income for some trader. As a result of this the African traders lose their businesses as their consumer go for Chinese products. The author also address the benefits of China imports to Africa.