Publications
Reporting Best Practice for
Non-listed Real Estate Vehicles in Asia

New Deloitte report expects steady growth in 2010 for global aerospace & defense

Dear clients and friends:

We are beginning 2010 with another economic perspective; companies are expecting positive results, contrary to the 2009 scenario. For 2010, The World Bank projected economic growth for both China & Mexico; for instance, they estimated an increase of 9.0% in GDP, and 3.5% for Mexico (base 2005). Therefore, it is time to monitor the global indicators to assess business alternatives.

In this 10th edition, we have included a variety of tax reports. We invite you to take a look at the series of fiscal flashes for CSG-Mexico practice, and download them in either Chinese or Spanish. Also, please review the Asia Pacific Economic outlook where you will find projections for China.

Do not forget to register to the upcoming webcast related to China.
At Deloitte, we strive to keep you informed about the legal, financial, tax, and business topics that may impact your company. When the economy is taking a positive turn, you can drive and accelerate business opportunities.

Contact us for more information about this newsletter.

Global Chinese Services Group
Deloitte Mexico

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Editorial comment
Bilateral business relationship

This Year of the Tiger 2010 has an interesting start. Over the last years, most discussions on the bilateral business relationship have focused on China being a threat Mexico. At Deloitte’s Chinese Services Group, we see it from a different angle.

During 2010, there have been major announcements from major Chinese companies coming into our market. This is exciting because, until recently, Chinese companies never considered Mexico as a first option as they always looked to neighboring Asian markets. For many of us, Mexico is the logical choice: our domestic market, geographic proximity to the US, and sharing deep cultural awareness and understanding of business practices within Latin America, all together we represent an attractive investment platform.

Experts have lately pointed out that manufacturing in Mexico is becoming cheaper than it is in China. Mexico could leapfrog China in certain areas of the manufacturing industry targeting to the US and Latin America. China's number one importer is still the US; however, with recent financial markets having issues and the rising cost of transportation, Mexico has become the logical way to go. Chinese companies have come into Mexico from many different industries. North of Mexico, we have had a major investment from a global player manufacturing electronic products. A rising 龙头老大 (champion) in the telecommunications industry announced a strategic alliance for aggressive expansion plans, not just for Mexico but for the region.

But, what does China represent for Mexican entrepreneurs? Local authorities in Beijing reported that retail sales in that municipality in 2009 represented an increase of 15.7% versus 2008, while the volume of transactions using bank cards and credit cards on point of sale terminals was 58% higher than in 2008. At the same time, international players ranging from pharmaceutical companies, beverage products, and retailing all have something in common: an impressive sales growth in China. The rising consumer expenditure and sophistication brought them a “modest” no less than 25% sales growth compared to 2008.

Whether you are a Chinese company looking to take full advantage of Mexico as a regional investment platform, or you are a Mexican company interested in joining to the production chain feeding the most populated and fastest growing market in the world, the Chinese Services Group of Deloitte can offer you the tools to help you succeed.

Contact us to find out how we can help you.

Cordially,

Go to GCSG site

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Taking the helm of business in China
Download tax bulletins & analysis

(NEW) Deloitte Mexico’s Tax Flashes for Chinese Companies

Download flashes in Chinese

International Trade
Social Security
Tax

Download flashes in Spanish

International Trade
Social Security
Tax

Tax Analysis - More guidance on calculation of tax for nonresident establishments
The State Administration of Taxation (SAT) issued two circulars on 20 February 2010 (Guoshuifa [2010] No. 19 (Circular 19) and Guoshuifa [2010] No. 18 (Circular 18)) that provide guidance on the calculation of Chinese Enterprise Income Tax (EIT) by nonresident companies with establishments in China.

Download Tax Analysis in Chinese
Download Tax Analysis in English

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Publications
Check out the latest business updates for China / Mexico

Reporting Best Practice for Non-listed Real Estate Vehicles in Asia
A new publication, "Review of Reporting Best Practice for Non-listed Real Estate Vehicles in Asia" is jointly published by Deloitte China Real Estate industry Practice and the Asian Association for Investors in Non-listed Real Estate Vehicles Limited ("ANREV").

Review in English
Document available in English

New Deloitte report expects steady growth in 2010 for global aerospace & defense
There are positive signs for the global aerospace and defense (A&D) industry in 2010 according to a new report by the Deloitte Touche Tohmatsu (DTT) Global Manufacturing Industry, Compass 2010 — Global Aerospace & Defense Sector Outlook.
For more information, please review the following documents.

Review in English
Document available in Chinese

Keeping pace
Be updated about China´s business environment through our online tools:

Register for upcoming webcasts
http://www.deloitte.com/ap/dbriefs

Transfer Pricing Documentation Requirements in China and Japan: Reflections, Tips, and Takeaways
25 March, 12:00 noon – 1:00 PM HKT (GMT +8)
Host: Paul Riley
Presenters: Lawrence Cheung and Setsuko Fukushima

The 2009 introduction of transfer pricing documentation requirements in China has created significant additional compliance obligations for Chinese taxpayers and Chinese subsidiaries of multinationals. Is Japan on the same track, and what steps are multinationals taking to address these requirements effectively? We’ll discuss:

• Recent documentation trends, including Chinese tax authority expectations, and practical measures for complying with them.‪
• Material transfer pricing risks commonly encountered and tips for managing them when preparing global or regional documentation.
• Transfer pricing documentation in Japan: when, what and how?
  

Gain insights from our experience with multinationals in the region and learn practical tips and takeaways to smooth your documentation process in FY2010.

Register for this event
Asia Pacific DBriefs

Expo 2010 Shangai China

Know more about the Mexico´s pavilion

Flying kites on a warm sunny day is a favorite activity for children all across the world. At the World Expo Shanghai, those sweet childhood memories can be recalled at the Mexico Pavilion.

People will see no building, but a 4,000-square-meter area covered in grass with hundreds of colorful Mexican kites flying in the sky.

Visitors can read a book, have a picnic or simply relax on the grass under the shade of the kites. They can also buy a traditional Mexican-style kite from the pavilion and fly it to recall the fun of their childhoods.

You can even learn how to make a unique Mexican kite as a souvenir.

The country's pavilion will be a "Kite Forest."

It will be a green slope with a total of 135 kites being flown over it. Seen from afar it will look there are hundreds of people flying kites together.

Read more of this article online
Check the latest news

Location: Shanghai, China
Duration: May 1st. to Oct 31st. 2010
More information:
http://en.expo2010.cn