On 22. March 2017, ECOVIS Beijing organized two events at the German Centre in Beijing. In the morning, our IIT & Social Insurance expert Manuela Reintgen, together with Klaus-Peter von der Eltz informed the on individual income tax and insurance plans for expats in China. In the afternoon, our partner Richard Hoffmann and ECOVIS Beijing tax expert Elizabeth Shi together with our partners from the German law firm Goerg, spoke about investment in Germany.
IIT & Social Insurance
Manuela Reintgen’s presentation covered various topics, such as the difference between secondment and local employment contracts, freelancers and non-independent work, as well as the basic tax and social contributions and their implications for foreigners working in China.
And with the deadline for the annual IIT declaration being March 31st, the seminar also gave an overview of the principal tax calculation and requirements. Ms. Reintgen also mentioned various ways of tax optimization and tax-free allowances.
If you want to know more about the individual income tax in China, read Richard Hoffmann’s article on the subject. For social insurance, please refer to Ms. Reintgen’s blog post on social insurance.
Invest in Germany
In the afternoon, our partner Richard Hoffmann and our tax expert, Elizabeth Shi presented, together with our partners from the German law firm Goerg, the chances and challenges for investment in Germany.
The seminar, which was attended by around 30 participants, emphasized the importance of foreign investment in Germany. Thus, Germany has received 11m Euro in Chinese FDI in 2016 and confidence in Germany’s economic outlook is growing.
Richard Hoffmann, therefore, introduced the main legal forms for Chinese Green Field investment, the role of local chambers of commerce and the different taxes and social contributions.
Furthermore, he also spoke of various subsidies for entrepreneurs in Germany, for example for foreign trade promotion, company setups, employment creation, R&D, training and business consulting, international cooperation, and similar activities.
For a company setup, for example, an investor can receive up to 500 000 Euro in low-interest loans and other benefits.
ECOVIS Beijing is a consultancy focused on accounting, audit, tax, legal and FDI advisory for foreign SME and start-ups in China and Chinese investors in Germany. For further information, please contact firstname.lastname@example.org