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Komfie Manalo, Opalesque Asia: China’s under-developed tax regime poses risk to businesses in the region, said Martin Ng of WTS during the latest Opalesque China Roundtable.
Ng said, "One observation worth noting is that China’s tax system is still lagging behind, it’s in a very infant stage. That means it poses a risk to business operators, because the China tax system is biased, and is meant to be biased to cope with its economic development stages. Some sectors are treated more equal than others. Some are water-tight regulated, and some are let loose."
He cited the country’s e-business sector, as an example of insufficient regulation. Ng said that individual e-shop operators and cross-border online games are often outside the tax net. Many China-made online games are played by overseas users and paid to overseas bank accounts, he added.
Ng continued, "How they are going to be brought back to the China tax net is not yet resolved. So these are examples of high-risk areas that should be tackled from a tax perspective. So far we haven’t yet seen a clear strategy from the regulators."
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In the same Roundtable discussion, Kenny Li, CEO of Sino-Foreign joint venture firm Quattro Quant, ...................... To view our full article Click here
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