The use of technology, trademarks or other rights of overseas companies by multinational enterprises in China will involve the payment of cross-border royalties. . Most enterprises will file tax declarations with Chinese tax authorities to withhold and pay corresponding taxes when paying royalties through non-trade transactions. However, it is very likely to overlook the customs implications involved, and therefore fail to declare the royalties related to the imported goods to the customs in a timely manner, leading to customs audits and ultimately administrative penalties. The issue of whether the royalties will be taxed by both customs and tax authorities, thereby triggering double taxation, has always been a concern for multinational companies in China. This article will introduce the customs implication on royalties and remind enterprises to pay attention to the customs obligations arising from cross-border payment of royalties

Anmerkung: Dieser Artikel ist der zweite in einer Reihe von Artikeln über „Börsengang und Finanzierung ausländisch investierter Unternehmen in China“ 1. Finanzierung und Kontrolle Einige ausländische Unternehmen sind darüber besorgt, dass ihre Beteiligung an ausländisch investierten Unternehmen mit Sitz in China („FIEs“) durch die inländische Finanzierung derart verwässert werden könnte, dass letztlich ein Kontrollverlust über die FIEs oder sogar ein Ausschluss von der Geschäftsführung eintreten könnte. Diese Sorge ist teilweise berechtigt, teilweise aber unbegründet, wie nachfolgend gezeigt wird:

With the successive promulgation of the Cybersecurity Law, Data Security Law, Personal Information Protection Law, and their supporting regulations, compliance requirements for cross-border data transmission have become a task that Chinese enterprises must take seriously. Specifically, enterprises with a need for Cross-Border Data Transmission (for example, overseas companies investing in and establishing production or trade enterprises in China, cross-border e-commerce stores, etc.) should establish their own cross-border data export compliance system in accordance with these legal requirements. However, the issue here is, how can companies with relatively small data outbound volumes, especially for these small and medium-sized enterprises (SMEs), act according to their needs and strive to set up a data outbound compliance system that meets the requirements of regulators at the lowest possible cost?