The European Union Chamber of Commerce in China, Pearl River Delta Chapter invites members to participate in the Legal and Taxation Working Group seminar.
Representative Office ("RO") registered in China is generally taken as an initial step by foreign investors to get familiarized with the local market, and explore future business and investment opportunities. Majority of ROs are confined to perform non-direct business activities like liaison with suppliers and customers, product promotion, market research, etc. ROs cannot hire local staff directly, import goods, issue invoices or receive business income. Having said that, many ROs are regarded as carrying on taxable activities and are required to pay China taxes using deemed net profit rate of at least 15% as stipulated by the tax authorities. In addition, the regulations on ROs have been tightened up with more stringent compliance requirements. For example, each RO is only allowed to have limited number of expatriate representatives (including Hong Kong and Macao people) and is required to maintain its books and accounts locally, and submit audited accounts every year. In some districts, ROs have been required to register as Value Added Tax ("VAT") taxpayer and need to file monthly VAT returns in addition to monthly Business Tax returns. With the above challenges, it can be costly and less business effective to operate in the RO model.
This seminar provides you opportunity to network with other Chief Representatives for experience sharing, and Mr. Caesar Wong, Partner at Deloitte would discuss the following latest information:
(1) Highlight of regulatory restrictions and tax rules on ROs;
(2) Tax costs for maintaining and operating a RO in China;
(3) Possible China tax exposures of overseas head office and its visiting employees;
(4) Trends of tax audits on ROs and their affiliates;
(5) Alternative business model for consideration;
(6) Transition arrangements for conversion into new model.
Speaker
Caesar Wong, Partner – Tax & Business Advisory Services. Caesar has more than 20 years of China and international tax and business advisory experience, including living in China for 10 years in Shanghai and Guangzhou, and helped corporations and government authorities to overcome their problems and materialize their business plans across the country. Caesar is FCCA, FTIHK, AHKICPA and CTA (HK). Caesar has been appointed by the Association of Chartered Certified Accountants ("ACCA") headquarter as the first China tax member in the Global Forum for Taxation. He is also the Council Member of the Taxation Institute of Hong Kong. He has worked with different government authorities in China at policy consultation meetings and on investment advisory projects.
For registration, please register through this website (button above).