Our comprehensive range of value added professional services include:

Tax Compliance

Result is the product of process. The tax return preparation and reporting process is critical to a company tax compliance level, which will affect the company's cash flow, profits and more importantly, the reputation of your company in China.

• We help you to review and improve your tax reporting system and design effective tax compliance tools tailor made for your company.
• We help you to train your professional staff in various aspects about tax reporting, tax knowledge, use of effective tax tools, and dealing with tax officials.
• If your company do not have a specialize tax reporting team. Our experts with years of specialized tax experiences will help you to review the financial data and to prepare flawless tax returns, at an even lower cost than having your own tax people.
• We help you to face the tax officials and help your company to build-up a professional image.

Tax Audit Support

Presently, tax audit is prevalent for all companies and individuals doing business in China. We are always on stand-by when you receive any challenges from the tax authorities. We help your company to present a professional image to the authorities and help you to minimize audit assessments, if any. We understand the laws as well as the practical implementations. We understand tax officials mind sets and how can we achieve the best results by using the appropriate communication techniques.

Our professional staffs have handled more than 30 tax audits and we achieve zero/minimum audit adjustments for all of them.

Getting professional support from the very beginning is the key to successfully handling a tax audit. Call us as soon as you receive the notice from the tax bureau.

Tax Health Check

In a huge emerging market like China, everything is changing at lightning speed. Change is good, while it brings about uncertainties. After years of development, many companies now have 10s of legal entities, hundreds of production lines, thousands of products and services in China. Meanwhile, the tax rules in China is becoming more and more sophisticated as well. Compared to early 90s, today a company in China needs much more specialized knowledge and well-developed processes to ensure a consistent tax compliance level.

With the increasing complexity of business as well as the increasing sophistication of the China tax rules, a periodic comprehensive review of the tax operations is more than necessary.

We can help your company to do a thorough review of your company's China tax operations in the context of your own investment and operation structure. We deliver solutions and help your company to implement the solutions with solid actions.

Tax Lobby

Many people have witnessed the enormous changes in China from a planned economy to a market economy in recent 20 years. The Chinese tax authorities are becoming more cosmopolitan in recent years. Multinational companies, international consulting firms have been contributing a lot of international best practices with respect to the revenue collection system.

From an enterprise's perspective, when they feel there is a need to change the law, if they can clearly identify the needs and develop a business case to the government, chances are new regulations will be issued.

We help to identify lobbying needs. The following are just a few examples:

• Business tax (BT), an ancient tax, which unlike VAT, is taxed on gross receipts. Currently, the Chinese VAT system is not a full VAT system. Provision of services and transfer of intangible and immovable assets is subject to BT. As the level of transactions increases, tax costs increase significantly. However, there are some exceptions under the existing BT rules that in certain cases, the credit system is applicable for BT. Does this apply to your business?
• Enterprise Income Tax. Currently, the consolidated EIT law is in the drafting process. We have already been coordinating with a lobbying group consists of major multinational companies. Please contact us if you are interested in this project.
• Special incentives. Many incentives in China are negotiable. The key is that your should negotiate with the local government from day one with a business and tax expert. We help our clients to get special incentives throughout China.
• Various local taxes. China adopts both revenue sharing and tax split mechanism. Some taxes are collected by the local government and some tax revenues are shared by the local government. To the extent of total local tax revenues, there is always a chance to get a tax exemption if you have a strong case on your company's contribution to the local economic development.

We help to understand the concerns of the Chinese government and find the approach to address their concerns. Two major concerns by the Chinese revenue authorities are revenue collection and tax administration, while for some other government authorities, e.g. Ministry of Finance(MOFCOM), FDI attraction, GDP growth would be their key considerations. To understand the government's mind sets will be a key to a successful lobbying project.

We help to package the lobbying needs and develop the business case. To let the government understand your business will be another key to success to a lobbying projects. However, you need to package your case in a way that is easy understandable by the government, i.e., to translate them into their own language. We are the firm that can help you to achieve it.

We help to find the right channel and leverage the right resources to carry out the lobbying project. We have sound connections with the central and local level revenue authorities as well as other government authorities, e.g. MOFCOM, Customs Office, Technology Bureau. Relationship does not help everything in China, while it is important.

Merger and Acquisition

We provide a systematic solution to your M&A deals in China. Our Merger and Acquisition Framework ("MAF") provides more than 2,000 detailed task lists for more than 10 functional departments:

• Sales and marketing
• Sourcing
• Marketing
• Manufacturing
• Engineering
• Logistics
• System/IT
• Communication
• Culture
• HR
• Legal
• IP
• Finance
• Tax

To successfully conclude a deal in China, having a systematic approach is a necessity instead of a guarantee. You need people who are very similar with China business norms, regulatory, financial and tax practices to identify all potential risks and opportunities, structure an attractive bid as well as an ideal investment, funding and tax structure.

We are the firm that can help you to achieve this. Our people, with the best in-country and international business, finance, legal and tax expertises, have helped our clients to successfully conclude 100s of deals over 10s of different industries in China. The experiences, professionalism, as well as solution-oriented culture makes us simply the best in this professional service area.

When you are getting different answers from different people, when you get lost in "such a different country", check with us.

Setting Up Businesses in China

China, a market with huge opportunities.. While many people believes it is still a developing market at an infant stage, to some extent, it is true. One of our clients tells us that they've asked some legal and tax questions about China to different firms but amazingly, all answers are different..

Opportunities are opportunities, don't let the regulatory and tax hurdles block your way, because you have Hendersen.

We provide a full range of services to help you set-up your business in China.

• Advise on the most relevant legal form (business vehicle)
• Work out the ideal investment and funding structure which can derive operational and tax efficiency
• Study on the appropriate locations to set-up your business
• Negotiate with the local government on best incentives
• All legal works to form your own business vehicle
• Formation of your China core team with our strong network with best Chinese talents
• Establishment of your statutory finance and tax reporting system

Transfer Pricing

Why transfer pricing is so important? Why it attracts so much attention from the governments around the world?

Very simple: Because every day, companies sells goods, services and intangible products among the related parties from one country to another constantly, China, just like the US, UK, and Japan, would want to collect their fair share of taxes out of these cross-border transactions. China has developed a set of transfer pricing rules (Circular 59 in 1998, and Circular 370 in 2003) and stepped up tax audit effort to crack-down unreasonable transfer pricing practices. Thousands of companies were audited and millions of dollar tax adjustments have been made.

Given the above, it is critical for your company to take a health-check on the following subjects:

• Do you have a sound, reasonable and defensible transfer pricing policy?
• Have you documented the policy and other information?
• Do you have the right set of market data?
• Does your current TP methodology fit your company the best? Are there any other alternatives?
• How to manage TP audits conducted by the government?

Customs and International Trade

For most of the multinationals, out of all the functions, Customs is probably the weakest-link. There is no clear ownership to Customs since it is not pure Legal, Tax, Finance nor Logistics... However, a significant portion of taxes companies pay in China is import duty and VAT !

Classification and Valuation are the top two matters concerning your imports. A slight change in product classification (which would lead to a change in HS customs code) could lead a huge duty/VAT increase or decrease... Also, as China pays more and more attention to transfer pricing, many companies have been challenged by the customs on the valuation front...

We highly recommend our clients to take a health-check on their customs matter. Some of our clients have already done so, and the results are very rewarding ...

International Employment Solutions 

The employment arrangement for expatriate employees is a very subtle area. It will not only affect the tax cost and effective compensation and benefits of the employee, but also a multinational company's corporate tax liability. This is an area that can be often overlooked, while overlooking this area will result in tax inefficiency and even tax underpayments that can attract severe penalties.

We provide a total solution to the international employment matters in China. In our team there are not only China tax experts, but also China HR experts. We are not only similar with China individual tax rules but also international tax. More importantly, we work as ONE FIRM!

• We help you to design the international employment structure
• We help you to develop creative and practical planning ideas to reduce your costs
• We help you provide very personal services, including entrance interviews, exit interviews, immigration process
• We help you to handle all individual tax filings for expatriate employee in a professional manner.