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Why Grant Thornton
Whether you’re growing in one market or many, looking to operate more effectively, managing risk and regulation, or realising stakeholder value, our firms can help.
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Grant Thornton’s culture is one of our most valuable assets and has steered us in the right direction for more than 100 years.
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Beyond global scale, we embrace what makes each market unique, local understanding on a global scale.
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Join our network
In a world that wants more options for high quality services, we differentiate in the market to grow sustainably in today’s rapidly changing environment.
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Grant Thornton International Ltd acts as the coordinating entity for member firms in the network with a focus on areas such as strategy, risk, quality monitoring and brand.
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Americas
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The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
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At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
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We can assist you with a variety of sustainability advice depending on your needs, ranging from initial strategy development, reporting and compliance support, through to carbon measurement and management.
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At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
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Our sustainability assurance services are based on our global network of specialists, helping you make more efficient decisions for the good of your organisation.
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Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
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Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
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Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
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Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
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The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
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A differentiating solution adapted to the context of your investments in Africa.
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Through our sustainability tax advisory services, we can advise how environmental taxes, incentives, and obligations can impact your progress, requiring alignment with governmental and legislative pressures.
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Banking Holding banking to account: the real diversity and inclusion pictureWe explore how the banking sector can continue to attract, retain and nurture women to build a more diverse and inclusive future.
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Sustainability From voluntary to mandatory ESG: How banks can future-proof their operationsAs we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.
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IFRS IFRS 9 - Audit of Expected Credit LossesGPPC releases The Auditor’s response to the risks of material misstatement posed by estimates of expected credit losses under IFRS 9
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growthiQ Steering your company to long-term successHistory has something important to tell us about the difficulties of steering a business to long-term success – through seismic shifts in technology, consumer demands and product development. With that in mind it’s unsurprising that over half the world’s largest companies in the early 1900s had shut their doors by the late 1990s. Some, however, have endured.
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International Financial Reporting Standards Implementation of IFRS 17 ‘Insurance Contracts’The auditor’s response to the risks of material misstatement arising from estimates made in applying IFRS 17 ‘Insurance Contracts’
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IFRS Get ready for IFRS 17After twenty years of development the IASB has published IFRS 17 ‘Insurance Contracts’, find out more.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Not for profit Mission: possible – putting impact at the heart of charityGlobal charitable continues to decline and charity leaders are increasingly looking at their own unique impact journey.
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Access to finance Raise finance to invest in changePrepare your business to raise finance to invest in change.
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Private equity firms Private equity in the mid-market: reshaping strategies for 2021When the global COVID-19 pandemic stormed across the globe in early 2020, the private equity sector was hit hard but deals are coming back to the market.
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Mid-market businesses Getting ready for private equity investmentOur specialists explore how private equity firms are now working with their portfolios and how the mid-market can benefit from investment.
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Mid-market businesses Myth-busting private equityNervous about partnering with Private Equity? We explore some of the common myths we come across when speaking to mid-market businesses about PE investment.
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Public sector Helping build the government of tomorrow, todayLearn about the Grant Thornton US public sector team.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Retail How retail is positioning for successCOVID-19 provided some hard lessons for the retail industry. It is time to turn those into sustainable and well executed growth strategies in 2021.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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Technology Mid-market tech companies lead the way on diversity and inclusionWe explore how the mid-market tech sector can continue to build and nurture a culture that’s increasingly more diverse and inclusive for women.
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Tax Resetting global tax rules after the pandemicBusinesses are seeing rising challenges, and finance heads are dealing with a range of new measures. To say the next 12 months are critical for businesses is an understatement.
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TECHNOLOGY International tax reform: the potential impact on the technology industryIn this article, we’ve summarised key elements of the global tax reform proposals, their potential impact on technology industry and advice from our digital tax specialists on what technology companies can do to prepare.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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TMT TMT industry: Fully charged or on standby?Our research revealed five key trends that resonated with Technology, Media and Telecoms (TMT) industry leaders around the world. We asked a panel of our experts from UK, US, India Ireland and Germany, to give us their reaction to the findings.
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Cybersecurity One size fits nothingTechnology companies must adopt a new approach to digital risk: those that successfully develop a reputation for digital trust by demonstrating an unwavering commitment to cyber security and data privacy will be able to carve out a competitive advantage.
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Technology, media & telecommunications Why it’s time for a 5G reality checkFigures suggest the mobile sector is maturing. While data usage continues to soar, mobile revenues are expected to flatten out over the next few years.
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International business Mid-market businesses lifted by rising tide of optimismOptimism among global mid-market business leaders rose to 67% in the first half of this year and they are markedly more optimistic about their prospects with global optimism having increased by 8%.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Hotels COVID-19: Checking in with the hotel industry one year onCOVID-19 provided some hard lessons for the hotel sector. It is time to turn those into sustainable and well executed growth strategies.
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- By topic
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Women in Business 2024
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COP28: Mid-market firms should seize the opportunity from adaption and innovation
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Scanning the horizon: Mid-market sets sights on global trade growth
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Mid-market sees business optimism reach record high
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Women in tech: A pathway to gender balance in top tech roles
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Women in leadership: a pathway to better performance
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Women in Business 2024
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Women in business: Regional picture
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Pathways to Parity: Leading the way
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IFRS Alerts
IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).
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Example Financial Statements
General guidance for preparers of financial statements that supports the commitment to high quality, consistent application of IFRS.
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Insights into IFRS 2
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IFRS 3
Mergers and acquisitions are becoming more common as entities aim to achieve their growth objectives. IFRS 3 ‘Business Combinations’ contains the requirements for these transactions.
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IFRS 8
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IFRS 16
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IAS 36
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IFRS 17
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Global expatriate tax guide
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International indirect tax guide
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Global transfer pricing guide
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At the time of tax reform in 2018, no guidance was shared on whether these preferential policies will continue after the transitional period. The potential increased individual income tax burden and the uncertainty has attracted the attention of both employers and employees.
In addition to changes in national regulations, regional developments are providing tax efficiencies tied to economic stimulus activities. Hainan Province, the Greater Bay Area and other regions/areas have implemented a series of special IIT incentives for international employees and financial incentives for companies for the acquisition and retention of talent.
These developments are occurring at a time when the China tax authority has enhanced its capability to analyse ‘big data’, and in turn, is targeting companies and even industries for tax audits where taxation is not compliantly managed.
Changes in preferential tax treatment for annual bonuses
From 1 January 2022 annual bonus payments made to a China tax resident shall be taxed alongside ‘comprehensive income’. Accordingly, the ability to efficiently tax bonus payments by applying annual tax bands and rates will cease to apply after tax year 2021.
Importantly, annual bonuses paid to non-residents of China still benefit from preferential tax treatment and this policy can be applied on an ongoing basis until there is a further regulation update. For companies with internationally mobile employees, it will be important to identify the implications for year-end bonus payments, incentive payments falling into the new tax year. Similarly companies with internationally mobile employees into or out of China should review the potential tax residency of forthcoming employee relocation to determine whether the continuing preferential treatment could be applied.
Non-taxable treatment of certain benefit for foreign individuals
Since tax year 2018, foreign employees have been able to choose tax efficiencies when they become China tax resident. This has been either the special additional deductions available to other Chinese residents, or tax exemption on certain expat 'benefits-in-kind' such as accommodation costs, language training expenses, and children education. For many international companies, these has provided a significant benefit in reducing tax costs for mobile employees. The expat benefit policy is valid only until the end of tax year 2021.
From 1 January 2022, foreign employees will no longer be able to benefit from the preferential policy providing tax exemptions for housing allowances, language training costs and children’s education fees. The more limited benefits available to other China tax residents will continue to apply, however where the company settles China tax due, perhaps under a tax equalisation policy, these expat benefits will incur a more significant tax cost from tax year 2022.
Income tax incentives and local financial incentives
With the announcement of the 'Notice on the Individual Income Tax Policy for High-end and Shortage Talents in Hainan Free Trade Port' (Cai Shui [2020] No. 32), the preferential personal tax policy for Hainan Free Trade Port has been officially implemented.
For highly qualified and scarce talent as defined in the regulations (including foreigners, Hong Kong, Macao, Taiwan and Chinese nationals) working in Hainan Free Trade Port, their comprehensive income, including salary, labour remuneration, author remuneration and royalties, as well as business income derived from the Hainan Free Trade Port, the amount of income tax paid in excess of a rate of 15% shall be refunded. This applies from tax year 2021 and accordingly the authorities are in the process of refunding through the 2020 annual tax reconciliation.
In addition to Hainan, there is also a similar policy for cities in the Greater Bay Area to attract and retain qualified high-end foreign talents. According to the policy, individuals who meet the relevant conditions may apply for financial subsidies for their comprehensive income, business operational income and subsidised income received from selected talent projects or talent projects that are higher than 15% of their taxable income.
Given China IIT applies at rates up to 45%, this represents a potentially significant tax saving for both employees and employers responsible for paying tax on behalf of their internationally mobile employees. International companies should review activities in China to determine whether they may qualify for these benefits through new or forthcoming business activity.
Insights from Grant Thornton
The termination of the annual bonus policy will affect employees at different levels. From the enterprise's perspective, it is recommended to review the compensation structure of different employees and anticipate their tax implications. It will be important that companies communicate with their employees to outline the potential impact and seek options for tax optimisation.
Companies should ensure that the existing non-taxable benefits arrangements for expatriate individuals are in compliance and that the corresponding documents are properly categorised and retained if required for tax inspections of employee benefits, such as year-end personal reconciliation and post-period management of the company. Companies should review policy trends and make adjustments in line with changes in the company's overall compensation system, while actively seeking options for tax optimisation.
It is recommended that companies understand and compare the different tax incentives and talent support policies in different areas, consider the business needs of companies, and identify tax planning opportunities. Optimising the tax efficiency of both companies and individuals. Companies should monitor the application process and material requirements in different regions, and make timely applications for the current year within the processing time period given by local authorities during the policy validity period.
In addition, companies are advised to update and refine their internal salary policies and employee application processes in conjunction with the relevant talent recognition criteria, personal tax financial subsidy calculation methods, issuance procedures, social security and visa issues, in order to cope with the regular application demands in the future.
A series of existing preferential policies are being gradually phased out as part of the continuing tax reform in China. At the same time, talent retention and attraction policies have been introduced at both national and regional levels. Aligned to wider business decisions and tax optimisation arrangements, employers should review the availability of new incentives and determine eligibility and benefit as part of their human capital strategy.
We hope you found this summary useful. If you would like to discuss any of the areas raised in this article please contact David Luo or Sherry Chen from the Grant Thornton China tax team.