European Union Chamber of Commerce

Finance & Taxation, Investment Working Group

“Cross-border Remittance and Receipts at Post-pandemic Era”

Date: Thursday, 9th November, 2023

Time: 15:00-16:30 (GMT+8, China time)

Venue: Offline at Shanghai Office and Online at Zoom

Register HERE

Dear members,

The European Chamber is pleased to invite you to the Finance & Taxation Working Group meeting “Cross-border Remittance and Receipts at Post-pandemic Era”, which is going to  take place at 15:00-16:30 Thursday, 9th November, 2023 offline and online.

The remittance and receipts of foreign exchange are under strict control by the government authorities om China, i.e. State Administration for Foreign Exchange (“SAFE”).  In addition, the foreign exchange payment and receipts are also subject to scrutiny by tax authorities. 

In the post pandemic era, there is an increasing needs for foreign exchange remittance/receipt for MNCs in China as the headquarter aims to centralize treasury management in a way to maximize the business’s return on a global basis.   Such cash remittance from China will needs to be managed with caution from PRC tax and Customs perspectives.

In the meantime, the persistent downward pressure as the Chinese economy continues on a recovery trend from the three-year COVID-19, some MNC’s business in China underperformed in 2022 and 2023.  With the approaching of the end of fiscal year, many MNCs are considering arranging transfer pricing compensation to their China business. Whether or not Value Added Tax (“VAT”) would apply on such transfer pricing adjustment has always been contentious in practice.  As China government shows its determination to support foreign investment in China, we have observed some changes in that respect recently.

The tax experts will share some of the regulatory and practice updates for the above in the seminar.

Objectives

To acquaint the audience with key PRC tax and Customs considerations applicable to cross-border remittance and receipts.

Who should attend

MNC CEO, CFO and finance managers who oversee tax/treasury/Customs matters and heads of business who are considering / are already involved in cross-border remittance and receipts. 

Benefits of Attending

We expect by the end of the sharing session, the audiences will:

-             have a broad understanding of latest regulatory requirement for foreign exchange and receipt in China;

-             understand the PRC Customs implications on the royalty fee/service fee or other non-trade payments, in particular whether such payments could be viewed as dutiable or not; and

-             understand the VAT position and practical approaches on TP compensation;

Agenda:

1)           common tax considerations in cross-border remittance

2)           regulation overview on key requirements of certain preferential tax treatment (e.g. Beneficial Owner, safe harbor rule of dividends) stipulated in double tax agreements/treaties

3)           the regulation of Customs regarding remittance of royalties and the practice of Customs

4)           tax treatment and foreign exchange controls on receipts of TP compensation

5)           cases sharing

Speakers

Mr. Jason Yu

Tax Partner KPMG China

Mr. Jason Yu

Tax Partner KPMG China

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Jason is a Tax Partner in KPMG Business Tax Advisory Team. He has around 20 years of specialist tax experience in China providing PRC tax, international tax and business advisory services to foreign and PRC domestic companies. He serves client across various industries including life science, industrial manufacturing, consumer products manufacturing, information technology and entertainment, business services etc.

With the rapid change of Asian economic and tax environment, many companies are facing problems or difficulties in its operation. Jason Yu, who witnessed all the changes, has been viewed as a valuable advisor to many companies with his rich experience and deep understanding of the macro mega trend and the micro-regulatory changes. He possesses ample experiences in foreign exchange advisory on cross-border cash inflow and outflow and TP arrangement.

Ms. Nicole Sun

Tax Director KPMG China

Ms. Nicole Sun

Tax Director KPMG China

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Nicole started her professional career with KPMG China since 2010 and is devoted to providing with advisory services to her clients faced with challenges from customs authorities in China and complicated customs issues in relation to customs valuation, tariff rates, processing trade, bonded operations, and supply chain optimization.

Nicole participated in a wide range of projects regarding customs duty optimization and utilisation of the applicable international trade models. She assisted a number of MNCs as well as domestic companies in customs compliance diagnosis, review and recommending on existing import and export processes, as well as exploring any potential duty saving opportunities.

Mr. Blaze Wang

Senior Tax Manager

Mr. Blaze Wang

Senior Tax Manager

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Blaze joined KPMG Shanghai in 2015. He has plenty of experience in providing tax advisory services to multinational clients in various industries, including consumer market, pharmaceutical, traditional manufacturing, etc.
Blaze provided many multinational and domestic enterprises with business and tax advisory services including organization strategy, mergers and acquisitions, restructuring, tax planning for cross-border transaction, tax health check, tax audit defense and so on. Besides, he possesses ample experiences in foreign exchange advisory on cross-border cash inflow and outflow.

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