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China - General |
| Author | Topic: offering HK based consulting services in China |
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name supplied |
posted 18 April 2006 07:15 PM
I would like to find out the constraints of offering marketing & sales services in China, while having setup the consulting firm in HK. Are Chinese companies allowed to purchase such services without restrictions from HK? If there are limits and regulations, what exactly are they? What financial implications (tax etc) has a marketing & sales service provision for a HK-company in mainland? Thanks in advance for your kind information! |
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Moderator |
posted 20 April 2006 05:25 PM
As you may know China has committed to opening up its services sector since it joint the WTO several years ago. And under the auspices of the Closer Economic Partnership Arrangement (CEPA) Hong Kong services suppliers are allowed to invest and operate wholly owned enterprises in a large array of services sectors ahead of other regional investors. In this regard we believe there are few restrictions on the provision of services in the mainland from local companies or from abroad. As regards the tax implication for the services provided from abroad please browse the entries on withholding tax in China found in the following: http://forum.tdctrade.com/forum/Forum7/HTML/000048.html |
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name supplied |
posted 05 June 2006 11:03 AM
Are they limits and regulations to offer consulting services (sourcing, business follow-up, marketing for instance) in mainland China for clients from overseas (Europeans) with a Hong Kong registered company ? There will be no invoicing of Chinese companies but extensive travel with/without European customers to China and of course meeting with Chinese partners (of our clients). I wonder for instance if a representative office in mainland is required (which I prefer not to do at least at the beginning)? What about profit taxation? in HK or in China? |
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Moderator |
posted 04 July 2006 10:24 AM
There are no restrictions on the provision of consulting services from a Hong Kong registered company in the mainland. If you are deriving incomes in China you are liable to a withholding tax of 10-20% in China. |
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James |
posted 04 July 2006 05:01 PM
You may even claim the withholding corporate income tax and business tax free provided that (i) your services performed totally outside the territories of China; and (ii) the period of time of your services performed less than 183 days. |
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An American in China |
posted 05 July 2006 05:50 PM
I think I know what you mean, i.e. you have a company based in Hong Kong and will do consulting for some European companies in regard to business in China. Technically, you need to set up a business in China, but in reality, there is no need. As you say, you will never invoice any Chinese entities, nor will you need a legal entity of your own in China. So, in effect, you are just travelling around China, looking around (i.e. sightseeing), then you go back to your office in Hong Kong and write up a consulting report that you invoice to a European company. Nothing at all to do with China, or Chinese taxes, or earning income in China. Remember not to type your report while you are in China! |
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Walter |
posted 15 August 2009 12:12 PM
I am a US citizen and am providing consultancy service to my clients in China. I do not have an office in China but do travel to China frequently. My questions are: 1) Am I required to register a company in China in order to receive consultant fee from my clients? 2) Do I have to pay business tax? if so, what is the tax rate? 3) Will all or portion of the income derived from my service to the Chinese clients subject to Chinese income tax? If so, what is the tax rate? Thanks |
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Ms Yeung |
posted 17 August 2009 10:11 AM
Strictly speaking, if you are receiving fees in China, you should set up a WOFE. Do you have a Hong Kong company? Should you wish to discuss further, please email me at info@a-swiss.com or check out www.a-swiss.com for more information. |
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Larry |
posted 24 August 2009 03:25 PM
Dear Walter, are you Chinese? Why not to consider cooporate with a Chinese partner. Please contact me by luning010@hotmail.com. |
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Mira |
posted 03 September 2009 10:29 AM
Dear All, we are professional consultant in china for foreign investment and tax issues. Feel free to contact me via email for any of your investment related enquiry. www.pathtochina.com |
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Moderator |
posted 19 September 2009 12:15 PM
for Walter: 1) not necessary; 2) income tax between 10% and 20% to be withheld by your fee payer and pay to the tax authority. |
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YK |
posted 03 November 2009 03:03 PM
Question A: 1)Can a partially-Chinese-owned training consulting firm registered in Beijing remit dividends to its Taiwanese or HK partners based in Hong Kong? 2) Are the partners subject to withholding tax? 3) Is the withholding tax 10% for both Taiwanese & HK partners? Question B: 1) If the firm is Hong Kong-based (set up by Taiwanese & PRC nationals) and has a branch office in Beijing, what type of taxes does the BJ office need to pay? 2) When the Beijing office remit profits to the Hong Kong headquarter, does it need to pay withholding tax? 3) Is there a limit on how much the BJ office can remit to Hong Kong? Thank you very much in advance for the answers and guidance.. |
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