China Deepens the VAT Reform

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Tuesday, 17 October 2017
in Business in China

China’s Value Added Tax (VAT) reform was introduced in 2012 and implemented national wide in May 2016. From May 2016 to June 2017, 85.12 billion RMB has been cut from companies’ burden, according to the Ministry of Finance.

Premier Li Keqiang confirmed that China will continue to refine VAT reform, following an August 18th meeting of the State Council Executive Meeting.

The VAT reform programs announced this year continue to streamline and simplify China's tax structure.

 There are four major changes as followed:

1.Tax tiers have been reduced from four to three tiers (now 6 percent, 11 percent, and 17 percent, with the 13 percent tier removed) and reduce tax rates for farm products, tap water, and publications from 13 percent to 11 percent.

Tags: Untagged

Established in 1985, ACS Motion Control (ACS) is an international manufacturing company that provides state of the art motion control solutions. ACS has sales and support centers in the USA, Germany and South Korea. In 2011, ACS started its business in China by using PTL Group’s operational platform.

In March of that same year, Mr. Tu joined ACS China as their China General Manager.

Q: ACS has been using PTL Group’s operational management service since 2011, how do you find this platform helping with your daily work?

 

A: A great benefit is that we don’t need to set up a legal entity since we can already operate by using PTL’s platform. They recruit and manage our employees in terms of payroll, social insurance, and the expense and reimbursement of our employees. Furthermore, they host us at their well-located office in Shanghai where we have our independent office space, but still enjoy use of the shared meeting rooms, reception, and cafeteria. Thanks to PTL Group’s operational management, I can focus on developing our business and managing a well functioned distributor team. 

Tags: Untagged

A Way out in the Chinese Market for an International Software Service Company An interview with PTL Group’s Client - Plataine

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Friday, 13 October 2017
in Business in China

Plataine is an award-winning provider of Cloud-based IoT manufacturing optimization software. Plataine’s patent-protected solutions provide material & asset tracking and

traceability capabilites, creating the Digital Thread from raw material to end product. Plataine’s AI-based Digital Assistants empower advanced manufacturers to make optimized decisions on time, every time. Plataine’s solutions are used by top-tier manufactures including Airbus, GE, IAI, and Steelcase. With its HQ and R&D center in Israel, Plataine extended its sales to China in 2009 through one sales representative, however, the sales took off dramatically since Mr. Jason Xu and a new team joined in 2014. Today, Plataine’s China sales activities is 10-fold the sales it was in 2014.

Tags: Untagged

WeChat “Mini Programs”

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 23 August 2017
in Business in China

Where are they heading?

On January 9th this year Tencent introduced WeChat Mini Programs after a long period of waiting. Before their launch, Mini Programs were the hottest topic among marketers and developers since they might well change the current mobile application market that is dominated by the App Store and Chinese alternatives to Google Play (since Google Play is not available in China).

What are WeChat Mini Programs?

WeChat Mini Programs is another function Tencent created for WeChat, a very popular app that has over 900 million monthly active users as of Q1 2017. The Mini Programs are developed based on the WeChat platform and can be run within WeChat itself. In other words, it’s an app within another app. Hence, mobile users don’t need to download a virtual app from the app marketplace, but can use the applications simply by opening WeChat.

Tags: Untagged

How to reach 100,000 reviews on a WeChat post

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 23 August 2017
in Business in China

Since more and more companies are realizing the importance of WeChat as a marketing tool in China, the following kinds of campaigns have been used

“Scan and follow our WeChat account to get 2 bottles of drink for free.”
“Take a picture and share on your moments and get 10 RMB discount.”
“Forward this campaign to your moments and receive a 100 RMB coupon. “

By using these general points above as the means to introduce your WeChat account, you can easily get your customers to spread your campaigns. Although many customers comply with corporate aspirations to share content, however after they have received the freebie or coupon they will delete the content which leads to a lack of results.

Tags: Untagged

A Letter from Head of China Marketing

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 23 August 2017
in Business in China

Dear colleagues and friends,

During the years we have been working for international companies and managing their Chinese digital marketing channels, I’ve come to realize that due to language and cultural barriers, most digital marketers working in the West find it difficult to keep pace with the fast changing digital landscape and regulations in the Chinese market. In the first case, the Chinese digital landscape looks very different from that in the West, e.g. there is no Facebook or Google here. Moreover, regulations here are liable to change from time to time, and that may influence the marketing activities and available channels that can be used in this market.

Tags: Untagged

New regulation of issuing Chinese VAT invoice comes to effect

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Friday, 04 August 2017
in Business in China

On May 19th, 2017, the China State Administration of Taxation (SAT) published an announcement titled, “Announcement of Matters Regarding the Issuance of Value-added Tax Invoices”.

In this announcement, it states that “from July 1 2017, a corporate purchaser needs to provide a Tax ID when obtaining a general VAT fapiao from a seller. The Tax ID should be on the VAT fapiao. If not, the VAT fapiao will not be seen as a valid tax payment receipt.” This means that corporations should exercise caution when they need issuing VAT fapiao since it appears that the SAT will monitor every corporation’s tax status.

Tags: Untagged

New Chinese “Green Card”

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 05 July 2017
in Business in China

In parallel with its newly implemented work permit system that categorizes foreign employees into 3 classes, China is reforming its permanent residence cards (Green Cards) to ease foreign experts’ lives in China.

The "Foreigner's Permanent Residence Card" will be renamed as the "Foreigner's Permanent Residence Identity Card." Just like the Chinese Identity Cards. The new ID cards will have a chip embedded that will ease the access to several social services in China, such as purchasing train and air tickets, bank transactions and hotel check-ins, etc.

Chinese “Green Card” is generally considered one of the hardest to obtain. Since 2004, when the government introduced this, only around 7,000 green cards have been issued. However, within the previous year the number of card holders has increased dramatically. “In 2016, 1,576 foreigners became new permanent residents of China. That's up 163% from the previous year, according to China's Ministry of Public Security.”

Keep in mind that not every foreign who resides in China is eligible for this card. Applicants must be in a specific tier based upon the visa class ranking system that has recently been implemented by Chinese authorities. This ranking system is based upon expert skills and attributes that they bring to the Chinese labor market. Some recent green card holders include high level business and technology executives, in addition to individuals who have out-performed expectations and brought value to China and Chinese companies.

Tags: Untagged

China’s Tax Offenders Blacklist System in a nutshell

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 05 July 2017
in Business in China

In 2016, the Blacklist system was introduced and implemented as a way of promoting “best practices” for tax recording and reporting among all business activities based in China. The relevant authorities now have the ability to enforce the 18 new disciplinary measures against any business that deem in violation of tax regulations. These new measures include: the restriction of access to governmental funds, the barring of companies leaving China, and the enforced disclosure of relevant information via the National Enterprise Credit Information Publicity System. Additionally, several other penalizing regulations are as follows:[1]

Tags: Untagged

HR Event Held at Daydayup Beijing

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 05 July 2017
in Business in China

May was a busy month for the staff at PTL. In the middle of the month, PTL’s China General Manager, Arie Schreier and Deputy General Manager Shahaf Nave traveled up to Beijing to conduct an HR seminar held by PTL at DayDayUp (DDU), a co-working space. Two of PTL’s clients are internet companies and they are hosted at DayDayUp with the HR and Admin support from PTL Beijing office. We realize that most newly founded companies found recruitment and HR management quite daunting and the rules are very different from the West. Therefore PTL held this seminar to share our knowledge and experience in HR with Daydayup members and the other newly started companies in Beijing.

Tags: Untagged

Supply Chain Management is Not Merely Managing Import and Export

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Thursday, 09 March 2017
in Business in China

Interview with PTL Group Logistic Manager—Chris Pan

Chris Pan has over 12-year operating experience at PTL Group. Chris leads the team delivering profitable integrated supply chain management solutions to bridge overseas clients’ penetration into China and assisting to build solid company reputation across diverse industries, ranging from medical equipment, electronics, security, chemical to agriculture machinery, water treatment industries. 

Q: You use the term “Fourth Party Logistics Provider” very often, would you please elaborate the meaning of the term and how it differentiates from “Third Party Logistics Provider”?

A: The concept of a Fourth-Party Logistics (4PL) Provider is an integrator that manages the resources, capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider targets at a function, 4PL targets at management of the entire process. A Fourth-party logistics provider can also be considered a consulting firm specialized in logistics, transportation, and supply chain management. In another word, the 4PL stands on a higher level and plays an important role in managing the client’s entire supply chain.

Take PTL Group as an example, as a 4PL provider we look after the whole process of our clients’ entire supply chain ranging from the sales forecast, cash flow planning at the HQ, importation/exportation, safety storage and distribution, etc. Our customized solution can help HQ make better plan and therefore implement HQ’s strategy with operational optimization.

Tags: Untagged

Brief Guide to the Latest Import Duty Regulations in China

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 08 March 2017
in Business in China

In 2016, there were several changes in import duty regulations. Goods that are imported into the Chinese territory may be subjected to three types of taxes and duties: value-added tax, consumption tax and customs duty.

Taxpayers of the three types of taxes and duties include all enterprises, units, household businesses and other individuals engaged in production or importation of taxable consumer goods within the territory of the People’s Republic of China.

Tags: Untagged

China’s Polluted Air is an Opportunity for Foreign Technology

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 08 March 2017
in Business in China

The Chinese are finding it hard to breathe. According to the WHO, the proper air quality level for daily living is no more than 25 micrograms of pollution particles per meter cubed of air. During the first days of 2017 in Beijing, the concentration of pollution particles in the air passed 500 micrograms, over 20 times the limit!

Under these conditions, PTL Group, as a company that provides shared offices in China and offers services including business and operational support for foreign companies, strictly maintain air quality and their offices are equipped with all required air filtration equipment, as well as a measuring device which shows the air quality at all times.  The company, managed by Arie Schreier, was awarded first place in a competition held by gem in Shanghai, which tested the air quality in a large number of co-working spaces in the city. The competition tested the air quality using three parameters: 2.5PM (concentration of small particles that pass through the respiratory system), amount of carbon in the air and amount of VOCs.  

Tags: Untagged

China has restricted its overseas transaction regulations

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 08 March 2017
in Business in China

Since the beginning of 2015 the value of the yuan against the dollar has weakened, devaluating more than 6% in 2016. Meanwhile, a large amount of capital left China, which led Bloomberg to 

estimate that China has suffered more than $1.7 trillion in capital outflow since 2015. A big percentage of this outflowing capital was used for overseas real estate investment by individuals and groups, some of which also involved money laundering. To slow down this outflow and combat money laundering the State Administration of Foreign Exchange (SAFE) is introducing restrictive measures that will be implemented from July 1 2017. After the implementation of the new measures, individuals are still allowed to transfer up to 50,000 USD yearly overseas, however the money transferred is not allowed to be used for real estate investment purposes, only for medical or travel services. If individuals want to transfer a higher amount they have to disclose their reasons and wait for regulators to evaluate their case. In addition to this, financial institutions will have to document all transactions, and since January 1 2017, the Bank of Shanghai and China Merchants Bank are required to have their customers complete a form if they want to exchange RMB to foreign currencies through mobile bank apps.

Tags: Untagged

New Regulations for Third-Party Payment Services

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 08 March 2017
in Business in China

The past few years have shown that payment through third-party services has become more and more popular among the Chinese population, and this popularity is only set to increase. Today many shops, retailers and restaurants accept third-party mobile payments such as Ant Financials’ Alipay or Tencent Holding’s WeChat Pay. On one hand it is convenient for customers to use third-party payment, but on the other hand it has a higher risk of money laundering and there is less transparency with these companies.

Tags: Untagged

2017 Chinese/Jewish Holidays Calendar

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Tuesday, 13 December 2016
in Business in China

Tags: Untagged

China's New Transfer Pricing Rules

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Friday, 02 December 2016
in Business in China

Written by Zachi Lichtblau at Bonnard Lawson International Law Firm

On the 13th of July 2016 China's State Administration of Taxation (‘SAT’) released Bulletin 42 that contains the new transfer pricing documentation rules. Since it will have a far-reaching impact on taxpayers, it is of great importance to be aware of the content and effects of these (partly) new rules. In principle, all multinational companies engaged in cross-border, related-party transaction can expect to be significantly affected by the transfer pricing documentation requirements in Bulletin 42. An exception has been made for multinational companies that are engaged in purely domestic related-party transactions.

Tags: Untagged

HR Management Can Be Tricky in China

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 23 November 2016
in Business in China

Interview with PTL Group HR & Admin Manager--Jasper Zhang

Jasper Zhang, a professional HR and Admin expert, joined PTL Group in 2011. Jasper has intensive experience in recruitment, HR management, payroll, KPI evaluation and various admin and mass layoff projects.

Q: What do newcomers and foreign companies coming to China need to learn before they start to hire employees here?

A: I think that there are two things foreign companies need to learn before they start to recruit their local employees: the Chinese Labor Contract Law and the C&B (Compensation & Benefit) system. For the C&B system in China, foreign employers should keep in mind that, conventionally, Chinese employees will always ask for something more than gross salary, e.g. a transportation allowance. So when checking with a Chinese candidate what their current income is remember to also ask about the salary package on top of the gross salary. In addition, you also need to understand the social benefits and housing system in China. By doing so, you will understand the total employer cost to you to hire this candidate.

Tags: Untagged

Termination Terms under the Chinese Labor Contract Law

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 23 November 2016
in Business in China

There are several forms needed to end a labor contract in China and each one of them has its own set of terms and rules; how the employer can end the contact, how the employee may quit, and how the severance payment should be calculated. These are some of the issues we have included in this brief guide to help you assess the termination terms in Chinese employment contracts.

Tags: Untagged

WFOE SET-UP IN CHINA

Posted by PTL Group
PTL Group
PTL Group has not set their biography yet
User is currently offline
on Wednesday, 23 November 2016
in Business in China

CHANGES IN REGULATION

Doing business in China is becoming easier and more appealing for foreign companies now that the WFOE set-up process has been simplified.

In early September a new set of rules were released to ease the burden on the business environment within China by reducing bureaucracy and increasing transparency. The rules specifically support Foreign Invested Enterprises (FIEs) and took effect from October 1st 2016. Among the amendments in the law, it was decreed that Ministry of Commerce (MOFCOM) approval will no longer be required; instead only online filing will be needed. However it is important to note that this will only apply to those businesses not listed on the negative list.

Tags: Untagged