How Foreign Companies Can Minimize Their Tax Liability In China

Online, November 25, 2009 (Newswire.com) - Hank Bourg, of the foreign direct investment firm, Dezan Shira & Associates, has released a free article outlining how foreign companies can best manage their employees and subsidiary's in China to minimize their Chinese tax liability.

The article, posted on the China Briefing website, www.china-briefing.com, details the tax treaty between the U.S. and China, which provides the framework for taxation of U.S. companies operating in China. He highlights the most relevant aspects of the treaty, specifically whether or not 'permanent establishment' has been reached by the foreign company.

The article concludes with some recommendations on how to reduce the tax liability of their company in China within the confines of the treaty. One such recommendation is that foreign companies should avoid sending expat employees whose service in China benefits the foreign HQ, on trips to China of more than six months. .

Hank Bourg is a U.S. certified public accountant and the head of the North American desk at Dezan Shira & Associates. For comments or inquiries, please contact him at tax@dezshira.com.