April 11, 2024
January 4, 2024
The December 2023 issue of the Kreston Brighture newsletter delves into recent advancements in financial and tax policies. This section highlights the latest changes, offering insights into their implications for both businesses and individuals.
April 17, 2023
R&D tax incentives in China have been made a permanent policy by China’s State Council. This month (March 2023) they announced the extension of supportive tax and fee policies that are aimed at incentivising innovation and supporting industries that were affected by the COVID-19 pandemic. These policies are expected to reduce the annual tax and fee burden on eligible companies by over RMB 480 billion, which is approximately US$69.8 billion.
One of the multiple policies that have been extended in the announcement is the tax deduction for research and development (R&D) expenses. The pre-tax deduction ratio of R&D expenses for certain eligible companies will continue to increase from 75% to 100%, with no expiration date specified. This policy was previously only available to manufacturing enterprises, but the 2022 Government Work Report expanded it to include technology-based small- and medium-sized enterprises (TSMEs) to encourage innovation.
In September 2022, the Ministry of Finance (MOF), State Taxation Administration (STA), and the Ministry of Science and Technology (MOST) temporarily expanded the policy of super deduction of R&D expenses to general enterprises. During the period from October 1, 2022 to December 31, 2022, the ratio for the additional pre-tax deduction for R&D expenses for enterprises that were already eligible was raised from 75% to 100%
The State Council has now announced that this temporary expansion will become a long-term policy, demonstrating the government’s eagerness to support tech innovation. The extended policy will provide more support to eligible companies and encourage them to invest in R&D, which will boost innovation and ultimately drive economic growth.
China’s renewed tax and fee policies are expected to provide much-needed support to industries affected by the pandemic and incentivize innovation through the extension of R&D tax incentives. This is a positive step towards boosting economic growth and ensuring the country’s long-term competitiveness in the global market.
If you would like to learn more about taking advantage of the R&D tax incentives in China, get in touch or read more about tax developments in China here.
March 7, 2023
Every year on 8 March, the world celebrates International Women’s Day to acknowledge women’s social, economic, cultural, and political accomplishments. It is also a time to take action towards achieving gender equality and empowering women. This year, Kreston Global aims to highlight some remarkable women within the organisation and gain their perspectives on what it takes to succeed as a woman in the network.
Annie Sun is a highly accomplished professional with nearly two decades of experience in accounting and statistics. She currently serves as the CEO of Brighture, a leading firm in China that specialises in providing expert accounting services to clients across various industries. Founded in 2003, Brighture has rapidly become a key player in the industry, thanks in no small part to Annie’s exceptional leadership and guidance. In 2015, the company joined the Kreston Global network, further cementing its reputation as a leading provider of accounting services in the region.
Why did you decide to run your firm?
Being a professional, I want to help more entrepreneurs succeed.
What qualities do you need to run a successful accounting firm?
To run a successful accounting firm, the endless selection of “professional, integrity and efficient” internal and external clients, namely colleagues and customers, helps.
How do you support equality in your firm?
There are two main points:
We recently surveyed ‘interpreneurs’ – entrepreneurs looking to expand internationally. The data showed that female CEOs were more likely than males to consider expanding overseas. Why do you think this might be?
Female CEOs may be more focused on collaboration and resource integration.
There was a significant indication that existing networks were an attraction to overseas expansion in particular countries; why do you think female interpreneurs value this more than their male counterparts?
The network can maximize the unity, service concept, and standards, which is a guarantee for both the company team and the clients.
What advice would you give female entrepreneurs starting today, or would you give your 28-year-old self?
Attentively adapt to society’s development and clients’ needs, with professional expertise to help them achieve success and stability.
To learn more about doing business in China, click here.
April 5, 2022
August 6, 2021
We are thrilled to announce that Edmond Chan, of Kreston CAC in Hong Kong, has been honoured once more by The Ministry of Finance of The People’s Republic of China in his reappointment as one of Hong Kong’s accounting and consulting specialists. This is the third time he has been granted this position.
July 2, 2021
Otafuku Foods Co. Ltd was founded in 1922 in Japan. It mainly provides liquid, solid and semi-solid seasoning products such as sauces and vinegars for condiment manufacturers and other food companies. It has developed into one of the largest seasoning products manufacturers in Japan and continues to grow in North America.
In order to promote a Japanese food culture in China and develop the Chinese market, Otafuku Foods Co., Ltd established Otafuku Foods (Qingdao) Co., Ltd in China in 2012.
As a Japanese production enterprise, it is really critical to have standardized financial accounting processes that can accurately deal with local tax policies and regulations in China and ensure strong tax compliance. Otafuku Foods (Qingdao) Co., Ltd appointed Brighture to help them with this.
Brighture’s team consists of financial and tax consultants, senior accountants and auditors who collaborate to ensure problems are solved quickly, who understand the company’s business model and more importantly can provide solutions to help improve and enhance operations.
Over the last 9 years, Otafuku Foods and Brighture have worked closely together on the growth of their business, their markets and their customers. Brighture has also helped them to develop new ideas and additional partners to help them grow new business areas, such as high-tech providers and maternity leave outsourcing services.
“Since its establishment in 2012, Otafuku Foods (Qingdao) Co., Ltd has been consulted and guided by Brighture in accounting, taxation, auditing and other aspects of finance and taxation. With professional services, Brighture answers relevant financial and tax questions, standardizes financial accounting of enterprises, helps enterprises prevent and control financial and tax risks, and establishes a foundation for the development of enterprises, which is worthy of customers’ trust and long-term cooperation.”
Mr. Huiming Luo
GM at Otafuku Foods (Qingdao) Co., Ltd
JCHX Mining is a major service provider focusing on engineering, mine construction, underground development, contract mining, and research and development in the nonferrous, ferrous and chemical industries.
It has a registered capital of CNY 583 million, employs more than 6,000 people, and controls 30 subsidiaries, four branches and a provincial-level R&D centre. As part of its business plan, the company asked Zhonghui, a member of Kreston Global in China, to help in three main areas.
JCHX Mining wanted to improve its internal management, particularly its financial management capabilities. They also wanted a better understanding of the IPO procedure, and to improve their information-gathering on the latest local rules affecting their various overseas projects.
Discussing their needs with JCHX Mining, we helped create an effective financial management procedure and compliance framework. We also provided an audit service in the company’s IPO and the issuance of a CNY 1 billion convertible bond. For its overseas business, we helped provide training for the financial staff involved in foreign projects while giving expert tax advice regarding various investment projects.
Lu Li, audit partner at Zhonghui, commented:
“It has been very satisfying to help such an important company make major improvements. Our advice will optimise business efficiency and provide solid financial foundations, helping the company continue to flourish globally.”
“It was the right decision to engage Zhonghui as our trusted consulting company for numerous complex national and international projects. The Zhonghui team of experts really worked well together to help us create a tailored reporting and tax filing process for our finance team worldwide.”
Zhu Hongmeng,
CFO of JCHX
June 22, 2021
