China's privately-owned enterprises have experienced vigorous development and growth over the past 40 years of reform and opening-up and are now facing a critical stage of family wealth succession. This includes many challenges in relation to business transformation and business succession:
- Family business transformation - planning for tax issues through transformation in advance not only achieves tax benefits, but also protects individual entrepreneurs and their businesses from tax risks.
- Family business succession - sustaining a family business beyond a couple of generations can be harder than starting the business in the first instance. While continuing to seek growth potential is essential, there is a strong need for effective risk management and controls in an environment of increased scrutiny.
- China domestic tax law changes – while an array of new tax incentives offer investment and business expansion opportunities, the new Individual Income Tax (IIT) law, effective from 2019, may create new uncertainties and challenges for high net worth individuals (HNWIs).
- International tax trends – global tax transparency initiatives such as the Common Reporting Standard (CRS) are having a high-profile impact on personal tax planning and management.
KPMG tax professionals can offer a complete suite of tax advisory and compliance services to entrepreneurs, their families and their businesses. Locally, as well as worldwide through our global KPMG network, we offer a tax planning and compliance service, which covers:
