6.8
Internet transactions in the Cloud Service Model, the Tax
Environment of Mainland China
Synopsis
:
1.
The impact of Mainland China’s admission of foreign investment to the
business of Taiwan’s cloud service providers in Mainland China.
2.
Tax issues in Mainland China that cloud industry should pay special attention
to.
The next generation IT is one of the seven focused emerging industries in Mainland China.
The rapidly growing domestic market in Mainland China has brought endless IT industry
opportunities, and thus Mainland China becomes a key area for the Taiwan-funded
upstream and downstream industry to rapidly pave their ways into the market. This article
analyzes the key areas of enterprise management.
6.8.1
The impact of Mainland China’s admission of foreign investment to
the business of Taiwan’s cloud service providers in Mainland China
Adhering to the industrial development strategy, Mainland China set different limits to foreign
investments (including Hong Kong, Macao and Taiwan). The cloud service providers should
clarify the foreign entry requirements of the proposed investment in mainland to avoid the
situation that the business cannot be carried out after investment of human resource
planning. Regarding the foreign investment restrictions or joint venture requirements,
enterprises should set their investment strategy by weighing the impact of the actual control
over the mainland enterprise under the framework of the Sino-foreign joint venture, and the
synergy of the internal funds and the niche of the management (such as access, market
share, etc.).
Certain restrictions on the industry investment of the funds from Taiwan and Hong Kong are
allowed to have an easier entry via ECFA and CEPA. Thus when enterprises develop their
go-strategy for the cloud market in mainland China, the actual case situation and the
feasibility of leveraging these frameworks can be combined to break through the access
restrictions.
6.8.2
Tax issues in Mainland China that cloud industry should pay special
attention to
