Taxation in China is perhaps the most widely misunderstood area of Chinese law. It is characterized by archaic and complex regulations, and even a foreign-owned entity with the best of intentions can find itself running afoul of the tax code. The complex universe of Chinese tax law needs to be deciphered by specialists who not only understand the requirements of the law, but who also have relationships with the local tax authorities that enable them to obtain advice and counsel.
Unlike many Western legal systems, an official of the local tax authority has the power to collect and abate a transaction; without his approval (as signified by his chop), subsequent steps in a given transaction cannot move forward. As a compendium to our practice in Licenses, Permits, Approvals and Government Support, we offer sound tax counsel through our accounting partner and certified public accountancy, along with our own confirmation of the proffered tax advice via our own contacts in the taxing authority. This two-pronged approach enables us to offer our foreign enterprise clients the highest degree of confidence in the tax advice rendered, bar none.
We assist clients with their tax matters in a variety of ways, including:
- Counseling clients on an optimal tax strategy
- Assisting with audits
- Filing administrative appeals, and
- Working with the tax authority on structured payments.
The Chinese government, not unlike other governments throughout the world, is aggressively pursuing additional tax revenue through a closure of loopholes, pursuit of deadbeat tax payers, and setting in place “chop gates” that impede flow of commerce that lacks proper tax scrutiny.
Foreign enterprises can avoid nasty tax problems by working with IPO Pang to design and implement tax programs that will minimize tax-related down time and maximize value. We emphasize the development and implementation of creative and innovative solutions to tax assessments and spend the time to lay out a future road map for our foreign enterprise clients so as to avoid or minimize taxation wherever possible. Compliance along with creativity, innovation, value, cost effectiveness and practicality is the key outcome we strive for in every engagement.