Our China expert Manuela Reintgen explained legal and tax reforms in China in our webinar (German language). These reforms are part of the strategy “Made in China 2025”. China intends to be the world’s leading investment location in key industries such as rail transport and electric mobility by 2025.
The webinar covered reforms on VAT, income tax and foreign direct investment. Ms Reintgen explained how these reforms also affect German companies. The income tax reform lowers or abolishes certain tax allowances for expats in China. This increases non-wage labour costs for employers employing foreign employees in China.
The VAT reform lowers tax rates in individual industries to promote China as a location for investment. The reform of foreign direct investment also pursues this goal. Foreign investors can now set up companies more easily and invest in previously limited industries. With a view to “Made in China 2025”, it remains to be seen whether China will implement these reforms in practice.
ECOVIS BEIJING would like to thank the DCW for the cooperation during this webinar. Many thanks also to all participants for their contributions and questions.
Business Development and Marketing Manager
Heading our Business Development and Marketing department, Manuela lived and worked in China from 2009 to 2017 and currently advises clients in- and outside of China from our Heidelberg office. She holds a diploma in Chinese, French and Law and has worked for several private and governmental institutions in both Germany and China before joining ECOVIS Beijing. Her focus is on foreign direct investment into China, she advises our clients on all aspects of establishing and doing business in China. Manuela is well versed in tax and legal regulations as well as main challenges and pitfalls SMEs encounter whilst managing their China entity.