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Cybersecurity Law in China

Posted by PTL Group
PTL Group
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on Wednesday, 23 November 2016
in Business in China

In July 2015 the National People’s Congress (NPC) proposed the first draft of a so called Cybersecurity Law. This year, on November 7th the law was submitted and takes effect in June 2017. Many global companies, especially those operating in the technology sector, are concerned about the passing of this law because they believe it will limit their operational powers within China. One reason, certain business operators say, is that with this law coming into force, the Chinese government would have greater powers to monitor and block any online content they perceive to be a threat. In addition to this, those concerned about the law are worried about the government, as well as various other parties, gaining more insight into foreign business’s data. The reason is that the new law requires companies to give the government investigators full access to their data if wrong-doing is suspected.

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Which class do you belong to?

Posted by PTL Group
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on Wednesday, 23 November 2016
in Business in China

China is testing a new work permit system that ranks foreigners

On November 1st of 2016, the Chinese government introduced a new work permit system that categorizes foreigners into “classes”. Under this system the “Alien Employment Permit” and “Foreign Expert Certificate” are combined to create a “Foreigner`s Work Permit” (FWP), which looks a lot like the Chinese ID card. The work permit will display an identification number, a photo and the name of the individual effectively replacing the passport for tasks such as purchasing train tickets. The FWP is currently being tested in nine cities or provinces, including Beijing, Tianjin and Shanghai with the plan being to roll out the new work permit policy nationwide by April 2017.

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Hiring foreigners in Shanghai has become easier

Posted by PTL Group
PTL Group
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on Thursday, 29 September 2016
in Business in China

From November 1, foreigners will only have to apply for a unified work permit as the two types of work permits for ordinary foreign employees and foreign experts will be streamlined into one.  The pilot scheme of unified work permit for expatriates is launched in nine provinces and cities, including Shanghai. The trial ends next April.

The application process will also be simplified, which means some materials will no longer be needed, such as a personal resume.

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How can you benefit from the VAT reform in China?

Posted by PTL Group
PTL Group
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on Friday, 23 September 2016
in Business in China

China has been paving their way to a fiscal reform that will help them achieve the economic and social goals set in previous years. China’s first step towards their fiscal transformation was the VAT reform that was implemented in Shanghai in 2012. This initiative was expanded to pilot sectors across the country on August 1st 2012 due to its remarkable success and its bolster the slowing economic growth. On May 1st 2016 the reform was officially implemented throughout all China. The reform program seeks to replace business tax with a value-added tax to avoid duplicated taxation and to lower the tax burden.

The trial program launched in 2012 was originally applied to service sectors, telecommunications, and postal services among others. Now, taxes in construction, property and finance are also bound to the tax initiative. The manufacturing industry, which already operated under a VAT structure, will benefit from this reform as they will obtain tax breaks on research and development to incentivize innovation.

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Do You Need an Operational Audit for Your Chinese Office?

Posted by PTL Group
PTL Group
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on Friday, 23 September 2016
in Business in China

When would you need to conduct an operation audit?

When we meet managers from international companies’ headquarters they often tell us their concerns about their Chinese activities: after a few years they have the feeling that the situation is not under their control anymore, or at least they feel they don’t know the details of what’s happening in their Chinese office.

Other times, we meet companies that, after spending some time in China, have the need to grow or downsize their local activities.

Whichever might be the case, this is the right time to assess your business so you can gain back full control of your Chinese branch, or understand how to better proceed with changes you’d like to make in your business. This is the right time to conduct an operational audit.

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