CLIENT SERVICES

Tax

Overview

DaHui’s tax practice spans China and the United States. We provide tax services for local ventures in each jurisdiction as well as for cross-border investments and multinational enterprises. In the era of a global corporate tax rate of at least 15%, advice and assistance in structuring operations, expense and revenue streams, etc. in order to achieve tax efficiencies calls for both local and international expertise.

DaHui’s tax team derives its cross-border expertise from extensive on-the-ground tax practice in both the United States and China. Our team has advised on tax incentives and other policies and more generally assisted with planning and structuring entry and operations in the United States. as well as handling tax filings, controlled foreign company and passive foreign investment company (PFIC) testing, foreign account tax compliance act (FATCA), IRS audits and other U.S. tax compliance matters. On the other side, for clients in or entering the China market, we regularly advise on the establishment or acquisition of legal entities, structuring both listed and unlisted companies, carrying out tax filings and applications for special tax treatments under local and national tax laws as well as treaties and more generally on investment, management and other business tax planning.

Given its 25% standard tax rate and especially the preferred 15% rate for high-tech, “advanced technology” and certain enterprises in the west of the country, China stands to become a more attractive tax base, especially for businesses with big supply chains or other elements that can all be brought under the advantageous tax treatment. Yet as in other areas of PRC law, practical know-how is paramount to implementing strategies within China’s nebulous tax regime. DaHui is the PRC-headquartered law firm with both the local and foreign capabilities to assist companies in achieving maximal tax synergies in China and beyond.

Our tax services include:

For local PRC operations:

  • Tax advisory services, including on equity structuring, transactions, etc.
  • Tax filing and compliance services
  • Tax due diligence and structuring for mergers and acquisitions
  • Interpretation and applications for tax incentives and special tax treatment
  • Tax inspection and dispute resolution

For foreign investments into the PRC:

  • Cross-border tax structuring of investment vehicles
  • Tax treaty assessment and application
  • PRC tax due diligence and structuring for mergers and acquisitions
  • Set-up, de-registration and compliance of local joint ventures and wholly foreign-owned entities
  • Business and work visas for foreign employees

For investments into the U.S.:

  • PRC or U.S. structuring of investment vehicles
  • Preparation of U.S. corporate, partnership, and individual income tax returns
  • U.S. Foreign Account Tax Act (FATCA) and withholding income tax compliance
  • Preparation of annual and quarterly tax provisions under ASC740
  • Tax audits and disputes with the IRS

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