With China’s growing dominance on the international economic scene over the last decade, coupled with a burgeoning and increasingly wealthy middle class, investment opportunities and business strategies have rarely been orchestrated without an approach to tap into the vast potential of the Far East.

The Chinese population is more affluent than ever before, with a purchasing power amongst its domestic population to rival that of more developed economies. Since opening its markets to foreign direct investment in the 1980s, China has benefited from huge returns on the international scene, with consistently high GDP growth year on year in the regions of 9-12%. In such a rapidly changing and evolving market in the East, a rich opportunity has presented itself for foreign investors to enter and both cater for and shape consumer needs in an environment with increasing demands and limited specialist suppliers.

This Chinese tax system is based upon a geographically segmented framework, separated into municipalities, provinces and autonomous regions. For corporate entities, an enterprise income tax is imposed, including a value added tax and a business tax. These are administered by the State Administration of Taxation (SAT). For individuals, the SAT administers income tax, which includes a levy on capital gains and a contribution to various social insurances. The Ministry of Finance is responsible for all tax policy.

Within our specialist tax consultancy services, we cater for the corporate and individual level, implementing the full structuring of a business or other investment in China, from designing the business plan through to the establishment of a foreign representative. Our years of experience will enable us to promote a structure for your company to take full advantage of the tax benefits you can receive through investing in China. In some instances where there is registered intellectual property, we would look at an intermediary offshore company to extract profits from China as low an overall tax rate as possible. In other instances where the client is simply seeking to source manufactured goods from China, we can introduce intermediaries to ensure quality control and negotiate the best possible deal with manufacturers. On the individual level, we have helped those looking to settle or retire in China on a permanent basis. Through the use of certain trusts, we have helped clients avoid vast tax bills including those accruable through inheritance tax.

We at TTS offer a comprehensive service to investors looking to maximise their opportunities in China. Our unique knowledge of the Chinese market, coupled with our strong working ties with the country’s local businesses, agents and major banks has given us a unique position when advising and facilitating clients looking to invest in China. This is bolstered by our linguistic support services across English and Mandarin, and access to a wealth of professional expertise within London, with a business network including chartered accountancy firms and law firms. For any further information, or to book a free initial consultation, please contact us.

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