Your Bridge to Success in China and Beyond

China’s corporate regulations have been evolving continuously, with the latest transformation being the unveiling of the new amendment to the Company Law. One of the most talked-about provisions in this amendment requires shareholders of limited liability companies to fully contribute their subscribed capital within five years from the company’s establishment. This regulation has sparked extensive discussions and debates within the industry, with many questioning whether this change signifies a shift from subscribed capital to paid-up capital, its appropriateness, and whether it will lead to mass company deregistration.

To promote business growth and attract investments in strategic sectors, several regions in China have introduced a preferential corporate income tax (CIT) rate for eligible companies. This policy aims to lessen the tax burden by reducing the CIT rate from 25 percent to 15 percent, specifically benefiting companies operating in designated sectors within various development zones.

The deadline for the 2022 tax year’s corporate income tax (CIT) reconciliation is at the conclusion of May 2023. The process, also known as annual CIT filing, is compulsory for all eligible taxpayers and must be completed within five months of the end of the tax year, which runs from January 1 to December 31. Its purpose is to assess whether all tax liabilities have been fulfilled and to determine whether the company is required to pay additional taxes or request a refund.

Through April 14 to 17, Sinovest partook in The Insights Congress. This year’s Insights Congress – AP (formerly the AP Regional Conference) took place in Singapore. It is the first conference between PrimeGlobal member firms in Asian Pacific area in the past 5 years.