Corporate Fees in China to be Reduced in order to Develop the Economy
- Written by: Bridgewest
- Posted: 2018-04-15
After several debates and overviews of the Chinese economy, a conclusion was made in this sense by the government. This aims to enhance the real economy by reducing the corporate fees and all sorts of taxes. This sums up approximately USD 48 billion and the Chinese State Council expects this to be a solid and a fruitful measure for future improvements. Foreigners can benefit in this sense by low corporate fees, but before making any investment, we suggest you get in touch with our team of lawyers in China for legal advice.
Several measures to boost the Chinese economy
The taxes for administrative procedures in China, particularly for first-time applications will be lowered this year. More than that, the next round of fee reductions will observe the energy, water and logistics projects. Companies in China can now cut different costs because the temporary plans linked to the payment of pension, unemployment, injury insurance have been extended until next year. Also, the public housing accumulation funds will be extended for two years, in order to help companies offer several benefits for employees and to improve the overall economic revenues in China. There are several ways to reduce taxes in China, and there are also tax minimization methods for existing companies. If you would like to know more in this sense, you can talk to our Chinese attorneys.
What will other fee cuts be implemented in China?
Paying the employment security funds for disabled persons in China will suffer modifications, meaning that employers will pay less. Also, another tax measure approved by the financial authorities in China is related to the telecommunication fees, as the data roaming taxes will be eliminated, leaving clear ways to develop the digital economy in this sense. In the same direction, another important improvement will be implemented in the business sector, by providing exclusive network services in form of particular packages at low costs for small and medium companies.
Foreigners can benefit from numerous tax improvements if they decide for business this year. If you need legal assistance when opening a company in China, please do not hesitate to contact our Chinese law firm.