Search Results for: business

CHINA | Q&A Performance of Contracts Part Two

Performance of contracts shall match the exact contractual obligations. Therefore, formulating robust and clear contracts is a must to decrease contractual disputes.

Parties to a contract must render exact and complete performances to be released from legal liabilities. Any unfulfilled legal obligations can be subject to civil and administrative penalties – therefore, for companies doing business in China, it is crucial to understand the legal basics of performing contractual obligations.

In part two, we highlight what companies need to know […]

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CHINA | Q&A Performance of Contracts Part One

Performance of contracts shall match the exact contractual obligations. Therefore, formulating robust and clear contracts is a must to decrease contractual disputes.

Parties to a contract must render exact and complete performances to be released from legal liabilities. Any unfulfilled legal obligations can be subject to civil and administrative penalties – therefore, for companies doing business in China, it is crucial to understand the legal basics of performing contractual obligations.

In this 2 part Q&A, we highlight what companies need […]

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CHINA | Calculating Individual Income Tax

In China, individual income tax (‘IIT’) is calculated on an accumulated basis.

From August 32 2018, the revised Individual Income Tax Law reformed taxable income for tax residents to be measured on a consolidated basis from the 1 January to 31 December (tax year).

In other words, the tax rate applied in January should be lower than December, as it is start of the tax year. Whilst, tax rates may raise in December as the accumulated income may increase through the […]

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