Legal and risk compliance - particularly the effective management of Anti-Bribery and Corruption (AB&C) risks – is an important task for multinational companies looking to do business in China and capitalize on the country's market opportunities. In an increasingly globalized world, companies operating on the Mainland should be sensitive to the fact that other than complying with domestic laws, there is also the need to take into account of other international standards such as the United States Foreign Corrupt Practices Act (FCPA) and United King Bribery Act (UKBA). Failure to do so could have severe implications as exemplified by recent high profile enforcement actions against well-known corporations under FCPA.
The release of announcements on Individual Income Tax (IIT) law in China has sparked a discussion on how companies with offices in China and individuals working there should adapt to these drastic changes. The amendments are so vast, that the current IIT reform is already considered the biggest in 38 years.