Institute for China Studies

Dr. Van Ostende published new book “China Secondment: Tax implications of cross-border labor dispatch”

11 January 2024

About the book

Along with the development of China’s economy and effects of globalization, an increasing demand for skilled resources in China exists. As a direct result of this, multinational companies with entities in China have been identifying high potentials within their organizations to dispatch them on temporary secondment arrangements to China to assume key technical, management or other positions with the Chinese entity.

In this publication the corporate income tax implications for organizations as well as the Individual income tax implications for secondees are discussed in detail. Attention goes out to the advantages of double taxation agreements may offer organizations, how to handle international taxation and avoid double payment of taxes between the jurisdictions as well as preferential treatments applicable, which have a mitigating effect on tax liabilities is discussed.

Due to the fact that some foreign companies have been providing services to Chinese entity under the guise of secondment arrangement in the past and herewith avoiding taxes, China in recent years has increased focus on secondment arrangements. Means of risk mitigation are discussed as it is imperative that secondment arrangements are well embedded in the organization and proof in regards of substantiating the genuine nature of the secondment arrangement, the non-resident home entity should be well documented.

About the author

Dr. Richard van Ostende, DBA lives and works in China since early 2007 and is currently based in Shanghai. During his career Richard held several senior management positions at both China based wholly foreign owned and joint venture subsidiaries of companies of European origin.

His expertise in the field of Foreign Investment into China has been widely acknowledged. He has been named International Friendship Ambassador for Nanjing Municipality, Ambassador for Investment Promotion of Yangzhou Municipality, Ambassador for Investment Promotion of Nanjing Gulou District, and Strategic Partner for Investment promotion of Nanjing Jianye District. Dr. Van Ostende is a recipient of China’s Jiangsu Province Youth Friendship Award.

Dr. Van Ostende completed his Doctor of Business Administration (DBA) with honours and Master of Philosophy in Business Research (M.Phil.) with distinction at Monarch Business School Switzerland. He further holds a Master of Business Administration (MBA) from Business School Netherlands and a Bachelor of Economics in Financial Services Management (B.Ec.) from Inholland University of Applied Sciences. Dr. Van Ostende further obtained his Higher Education Teaching Certificate at Harvard University, The Derek Bok Center for Teaching and Learning with distinction.

Additional information

For ordering or additional information about the new book, click here