Category Taxation in China

Alipay Allows Tourist Tax Refunds

August 23, 2018 Taxation in ChinaTaxation in South Korea

Alipay tax refundSEOUL – Alipay, the world’s largest mobile payment network, is now leading the way for mobile tax refunds for tourists.

In a press release earlier this week, the mobile payment network announced that it is launching the first digital tax refund service in the world.

The new service will be open to tourists from China who have made purchases while visiting South Korea for tourism purposes.

With the new system, tourists using the Alipay system can skip the customary visit to the tax-refund kiosk and counter.

All that users will need to do is scan their passport at a specified location prior to departure.

At any point within 90 days of eligible purchases being made, the tourist can scan their tax refund receipts into the Alipay app, and the tax refund will be credited to them directly and ...

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Have Babies or Pay Tax, Says China

August 21, 2018 Taxation in China

fertility taxes in ChinaSHANGHAI – China could soon tax people for not having enough babies.

Hu Jiye, a finance professor at China University of Political Science and Law, is calling for the government to use taxes to encourage couples in the country to have more children.

The first of the two proposed taxes is a tax on the incomes of dual incomes couple with no children.

The professor claims that couples like these will end up consuming social resources, as they do not have kids to take care of them in their old age.

The collected taxes would offset the financial burden that the couples may eventually place on the government in the form of health care and social welfare.

Further, Hi Kiye called for the implementation of a fertility fund.

If enacted, the fund would see a tax paid by couples, with the collecte...

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China Cutting Business’ Tax

May 8, 2018 Taxation in China

Bund Sunrise April 16 2018 in Shanghai ChinaBEIJING – Chinese firms are being given tax cuts, and encouraged to spend their savings on technology and training.

Late last week the government of China announced that it will be implementing a series of tax cuts for businesses, ultimately aiming to help modernize the economy by encouraging extra spending on greater use of technology and staff upskilling.

The government are dropping the rate of VAT for businesses, based on the industry in which they operate.

The sale of goods will now see a VAT rate of 16 percent, compared to 17 percent, while businesses in transportation, logistics, and construction will see their tax rate drop from 11 percent to 10 percent.

No changes will be enacted to the already reduced rate of 6 percent for businesses operating in financial or consumer services.

Te...

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Foreign Firms to Get Chinese Tax Breaks

December 30, 2017 Taxation in China

China taxBEIJING – China hopes to attract more foreign investors into the country by using a series of tax breaks.

The government of China is offering up tax breaks for foreign companies in exchange for re-investing profits into their local operations.

Under the new rules, any foreign business which meets the pre-set criteria and re-invests in profits in China will be eligible to be exempt from paying provisional withholding income tax on the re-invested profits.

The prerequisites include keeping the investments in industries favored by the government, and ensuring that the re-investments flow directly to the target entity and not through some intermediary arrangement.

The government hopes that by encouraging the re-investment of profits into China many companies can be convinced to boost techno...

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Taxes Putting Churches in Danger in Canada

May 18, 2017 Taxation in China

Churches in CanadaOTTAWA – Churches in Canada are now seeking extra tax bills after enjoying exemptions for years, and the new financial pressure is putting the religious groups under extra pressure.

Some churches in Canada are currently undergoing investigations launched by local tax authorities, aimed at seeing the religious organizations pay a level of taxes that is more in line with a business.

Typically churches in Canada do not need to pay council tax, however, tax authorities are now taking steps to see churches pay at least a portion of the tax.

Investigators have allegedly visited churches to investigate the use and purpose of each room in the church, in order to determine what proportion of the building is used for community or religious purposes.

The exact amount of tax to be paid is being calc...

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