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China has restricted its overseas transaction regulations

Posted by PTL Group
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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.

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New Regulations for Third-Party Payment Services

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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.

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2017 Chinese/Jewish Holidays Calendar

Posted by PTL Group
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on Tuesday, 13 December 2016
in Business in China

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China's New Transfer Pricing Rules

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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.

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HR Management Can Be Tricky in China

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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.

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