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Perspective

Jan. 20, 2011

Entering China: Tax Risks to Watch For

Multinationals in China must navigate its sinuous tax structure. By Allan Marson, Kelly Going and Grace Shie of Baker & McKenzie.


By Allan Marson, Kelly Going and Jason Wen


In addition to visa and employment risks, a U.S. multinational entering China should be aware of tax obligations on individual income and business services and of new tax-related registration requirements.


Employees are subject to individual income tax on employment compensation at rates ranging from 5 percent to 45 percent after certain deductions. Compensation paid to a foreign national may be exempt from ta...

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