Seminar and Q&A with Shenzhen Commerce Bureau and Shenzhen Taxation Bureau

2020-08-27 | South China

On August 27th 2020, European Chamber South China Chapter co-hosted a policy interpretation seminar on 'Shenzhen’s 2020 Stabilizing Foreign Investments and Promoting Development' announcement published by the Shenzhen Municipal Government. Representatives from Shenzhen Commerce Bureau and Shenzhen Taxation Bureau brought insights on the new policies, interpreted relevant regulations and responded to foreign companies' Q&As.

Ms. Shuying Wang from Shenzhen Commerce Bureau, started her speech by giving a brief background introduction of this policy making. She addressed on how COVID-19 has greatly impacted on the general economic environment this year. Due to the pandemic situation, economic growth is stagnated, and many enterprises and entities have exposed to financial risks and crisis. Then, she talked about the overview of Shenzhen’s Foreign Investment landscape. Wang specifically pointed out the challenges of attracting foreign investments in Shenzhen this year, including factors like unresolving Hong Kong issues, termination of existing projects, and competitions from other second-tier cities. In the second half of her speech, Wang interpreted comprehensively on the new policies and shared some key policy highlights. According to the new policy implementation, Shenzhen municipal government proposed different degrees of monetary rewards on establishment of new foreign-invested entities in Shenzhen. Additionally, Shenzhen Commerce Bureau also helped set up service stations in main industrial parks to provide faster and more convenient service for Foreign-invested entities. Shenzhen Commerce Bureau have set up specific project teams in helping foreign-invested entities resolve their encountered issues during this unprecedent situation.

Shenzhen Taxation Bureau gave an introduction on their office functioning areas and later a detailed interpretation on new regulations regarding transfer pricing and tax avoidance. They have touched upon topics like the application steps and process of tax avoidance, and how to control risk of transfer pricing. Shenzhen Taxation Bureau indicated that they would continue assist Foreign-invested entities in arranging transfer pricing and related issues and strive to simplify the process to better serve the foreign-invested entities here in Shenzhen.