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Luxury Brands in China: Part V

March 26th, 2008 by China Business Success Stories

Tax and regulatory issues

By Nick Debnam & George Svinos, KPMG

Chinese Tax and Regulatory IssuesThe process of importing, distributing and selling luxury goods in China raises further challenges for companies, including a number of difficult questions regarding tax treatment, customs duty, logistics and the transfer of intellectual property.

Customs duty, import VAT and consumption tax can all be charged on luxury goods imported into China. The ability of brands to mark up their goods at dramatic premiums can also prove difficult to explain to tax authorities when the time comes to file income tax returns. Companies producing or trading luxury items need to understand how to avoid unnecessary or overlapping burden of tax and other duties. For example, VAT and business tax should in theory be mutually exclusive, since both are turnover taxes. Read the rest of ¡°Luxury Brands in China: Part V¡± or post a comment

Documentary on doing business in China

September 25th, 2007 by China Business Success Stories

Doing Business in ChinaLast week we saw a great documentary on doing business in China, called ¡®Brits Get Rich In China.¡¯ The documentary features three British entrepreneurs; Tony Caldeira, Peter Williams and Vance Miller.

Tony Caldeira had a successful cushion business in Liverpool, but his company lost the battle against cheap Chinese imports. In order to save his company he decided to go to China and set up his own cushion factory. He invested millions of his own dollars to achieve this goal. Read the rest of ¡°Documentary on doing business in China¡± or post a comment