The Shanghai Municipality promotes an action plan to facilitate payments for foreigners

The General Office of Shanghai Municipality has released the “Shanghai Action Plan to Further Improve Payment Convenience”, aiming to streamline payment procedures for foreign visitors coming to China.

The expected objectives will concern the following areas:

– Wider acceptance of foreign bank cards at key locations such as restaurants, supermarkets, pharmacies, hospitals, tourist attractions, hotels, transportation centers;

– An increase in the availability of ATMs from which it is possible to withdraw with foreign bank cards and the maintenance of cash payment channels, as well as a greater presence of foreign currency exchange points;

– The optimization of mobile payment services, facilitating the use of payments by “foreign-card bound” on the main local platforms (WeChat Pay, Alipay);

– The simplification of services relating to bank accounts for foreigners, from online appointment for account opening to the provision of multilingual services;

– The creation of dedicated areas in Pudong and Hongqiao airports and in star hotels, where visitors can purchase cards for city transport and exchange currency, receiving local currency even in small denomination;

– Greater communication activity, to promote the new measures to foreigners through the use of guides, promotional videos and dedicated consultancy structures.

The plan proposed by Shanghai is in line with the measures proposed for the entire Chinese national territory. The difficulty of making payments using foreign bank cards represents in fact another barrier, in addition to the linguistic and cultural ones, that visitors arriving in China face, making facilitation in this regard increasingly necessary.

https://www.shanghai.gov.cn/nw12344/20240430/17d55b402ea04e3eadb86983b1850681.html)

Update of the double taxation Agreement between the Italian and Chinese governments

On 15 April 2024 the Council of Ministers, upon the proposal of the Minister of Foreign Affairs and International Cooperation, Antonio Tajani, approved a bill for the ratification and execution of a previous Agreement stipulated with the government of the People’s Republic of China regarding double taxation with respect to income taxes and the prevention of tax evasion and avoidance.

The text approved on 15 April updates the already existing Agreement signed between the two States on 31 October 1986, in order to adapt the legislation to the recommendations of the OECD/G20 BEPS (Base Erosion and Profit Shifting) project.

The updated Agreement applies to residents of the contracting States, and for Italy in particular relates to IRPEF, IRES and IRAP taxes, by setting general and subsidiary criteria through which defining a person as “resident of a Contracting State”, and by clarifying the cases in which a “permanent establishment” is involved.

The approved text regulates specific topics related to the double taxation issue, among which there are: taxability of real estate income, which must be taxed in the State in which the real estate that represents the income source is located (albeit in a non-exclusive manner); the treatment of business profits, as well as profits deriving from the operation, in international traffic, of ships or aircrafts; taxation rules for capital income regarding dividends, interest, royalties and capital gains; distribution of taxation in the two contracting States in relation to: independent professions, subordinate work, members of management and supervisory boards, remuneration from artistic and sporting activities, as well as sums received as pensions or for other public functions performed; the criterion of exclusive taxation in the State of residence for any other residual type of non-mentioned income; the methods for eliminating double taxation, in accordance with the domestic legislation of each contracting State; anti-abuse provisions, the principle of non-discrimination, the mechanism of the amicable procedure for the resolution of disputes, and the exchange of information between the two States.

This initiative signals the intention of both governments to improve the condition of Italian companies operating in China and to give more certainty to Chinese investors interested in or already engaged with the Italian business environment.

The business regulatory environment in China is in constant evolution, prompting local administrations to understand, manage, and carry out the new regulations issued at the national and provincial level, a task that can be burdensome due to the complexity of the matters involved. Recently, the Shanghai Municipality issued the «Shanghai Action Plan to Adhere to Benchmark Reform and Continuously Create a World-Class Business Environment», whose main intent is to reach a greater optimization of the business environment in China, so as to attract top-quality domestic and international companies.

As a legal and tax consultancy firm with a solid footprint in Shanghai, CPO & Partners went to visit the Jing’an Administrative Service Center to have a meeting with the district administration on the new policies for investment projects found in the «Shanghai Action Plan».

This represents a precious opportunity for CPO & Partners to make inroads into the local regulatory environment, a task that can sometimes be challenging due to language and cultural differences that can create communication hindrances and reduce the exchange benefits. Moreover, dealing with the district authorities is a good way to network with local offices and understand their functioning, in the belief that only by properly knowing the administrative system one can accurately provide consultation, in order to reach a win-win outcome that is advantageous for both parties.

合资企业榫桥卯梁的成立是由[中国公司名称]和[外国公司名称]之间的合伙关系产生的，创造了一个新的实体，目的是激励中国和欧洲双方之间的商务联系，通过在这两个实体之间建立一座坚实的桥梁。 这个新项目的名称本身就是对引导这种合伙关系的信念的声明。 这四个汉字实际上是融合两个单词做的：“榫卯”和“桥梁”。 第二个是桥梁，标志着合资企业在中国和欧洲商业世界之间建立的通道。第一个是榫卯，一种结构，具有更丰富的文化意义，深入中国历史。 榫卯是中国古代建筑和家具用的一种结构方法，为凹凸部分组合在一起，而不使用任何钉子。 它的独特特点之处不仅在乎它的创造力，也在乎需要每个成分之间的完美配合。正是这种完美的配给了整个结构坚实性和耐久力，故宫/紫禁城就证明了这一点，它是这种结构方法的一个珍贵例子，显然[stand the test of time. Maybe there is a specific Chinese expression to state this]。

正是根据这种精神，榫桥卯梁将对我们的客户建立完美和持久的配合，在中国和欧洲之间建立一座稳定的桥梁，一个坚实基础能够抵抗时间的挑战。

为了介绍这家新合资企业，由中国意大利商会、意大利圣保罗银行，赛珀欧（上海）企业管理咨询有限公司和嘉善航启科产园区管理有限公司主办的会议将于 3 月 15 日在苏州举行。在这项会议期间也将概述中国和意大利之间当前和未来的商业关系。

On January 26th, CPO & Partners had the privilege of engaging in a series of productive meetings with government officials in Jiaxing, China. The discussions centered on the diverse investment opportunities available in the region, highlighting Jiaxing’s commitment to fostering a conducive environment in Jiaxing for international business collaborations.

The visit was further enriched by an immersive experience in Science City, a hub of innovation and technology that exemplifies the forward-thinking ethos of Jiaxing. Additionally, we had the opportunity to visit CEBI, a renowned company in the automotive sector, which stands as a testament to the robust industrial capabilities and business-friendly policies in place.

These encounters underline the potential for fruitful partnerships and investments in Jiaxing, reinforcing CPO & Partners’ commitment to facilitating cross-border connections with industrial parks, with the project for year 2024 to create an investment platform for foreign companies that could be guided in the difficult interpretation of rules and choice of the most proper location for their investments. We remain dedicated to exploring avenues that benefit our clients and contribute to the economic development of the regions in which we operate.

CPO & Partners Shanghai Office Holiday Closure Announcement

CPO & Partners Shanghai will observe the Chinese New Year Holiday from February 10th to February 17th, 2024.