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Coronavirus outbreak consequences from a legal perspective

In this episode of Daxue Talks, Nicolas Coster, a French business lawyer based in Shanghai, explains how the coronavirus outbreak impacts the tax regulations, visa applications and logistics for enterprises. With his legal expertise, Coster explains the new regulations in these domains.

Full transcript below:

I am Nicolas Coster, I’m a French business lawyer. I’ve been in China for 16 years and specialized in foreign direct investment. So, basically, I set up companies in China.

What new rules and tax benefits should be expected after the virus outbreak?

What to expect is probably some tax incentive for VAT. At the moment it is not so clear. I just called Shanghai this morning and, for instance, for social taxes, they are discussing it but have no final solution. What is sure, is that if you do not declare on time your income tax, VAT or social charges, they will be flexible and accept delays. The Chinese government also says that it will inject a lot of money in the economy.

What is the virus’ impact on logistics from a legal point of view?

It is very simple. All parcels have to be delivered at the gate of the office. They don’t want visitors to come into buildings. You have some exceptions, for example, if you want a client to visit the office. He has to give his name, tell from where he comes and someone from the office has to come downstairs. There can also be exceptions if the delivery is really heavy. Also, each building has different rules.

For external parcels from other cities, it depends on each and every company. Most of them are working but it can take a lot of time to receive a DHL from Europe (10 days).

What effect does the current outbreak have on visas?

For visas, the Police and Security Office says that as a foreigner, you need to extend your visa or change your job, it is possible to apply for an extension for 30 days. If you are not able to leave because you are under quarantine, you can extend as long as you are under quarantine.

The most important is to declare yourself. For labor permit applications, they are often accepted if you apply online. So, they are really flexible. The most important is to declare what your situation is, and authorities will guide you.

Are there any restrictions on tourist and business visas for people who want to go to China currently?

No, there are no restrictions for tourists and business visas at the moment. Of course, if you apply to go to Wuhan, you won’t be allowed to go there. For other parts of China, there is no issue at the moment.

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The ultimate Coronavirus economic impact in China report