Your Guide to Hiring Employees Locally in China
Are you seeking to expand your operations into China? China’s labour market is evolving rapidly. Understanding its dynamics is crucial to ensuring success in recruiting and retaining the right talent. This article will walk you through the important aspects of the hiring process in China. Topics covered include methods to hire local employees, employment contracts, and other compliance considerations.
What are Fapiao Invoices in China?
In China, fapiaos (meaning invoices) play a pivotal role in everyday business transactions and taxation. Unlike invoices or receipts typically used elsewhere, fapiaos have several functions. These official invoices serve not only as proof of purchase and sale of goods and services but also as a vital component in tax compliance. Due to the distinctiveness of the fapiao system, many foreign businesses establishing operations in China encounter challenges when navigating it.
Hong Kong’s Foreign-Sourced Income Exemption Regime: New Draft Legislation Expands Scope to Include Asset Disposal Gains
On 13 October 2023, the Inland Revenue (Amendment) (Taxation on Foreign-sourced Disposal Gains) Bill 2023 was gazetted to further refine the foreign-sourced income exemption (“FSIE”) regime, expanding the scope of disposal gains to include gains derived from the disposal of all kinds of assets, including movable and immovable property. Subject to the approval by the Legislative Council, the refined FSIE regime is expected to come into force on 1 January 2024.
Hong Kong Introduces Bill on Tax Certainty Enhancement Scheme for Onshore Equity Disposal Gains
On 20 October 2023, the Inland Revenue (Amendment) (Disposal Gain by Holder of Qualifying Equity Interests) Bill 2023 (“Bill”) was published. It was introduced in Hong Kong’s Legislative Council on 1 November. The Bill introduces a tax certainty enhancement scheme for onshore equity disposal gains. This article below will delve into the key features of the new tax certainty enhancement scheme as detailed in the Bill.
