Hon Hai Restructures Mainland Businesses for Tax Purposes
China Business News, 3/13/08
EMS powerhouse Hon Hai has announced that it will reorganize its mainland Chinese services and transfer control to Hon Hai's Hong Kong subsidiary. A number of companies will be affected by the restructuring, including China Galaxy, Fair Pacific, Pacific Stand, East Honest, and Foxconn (Far East). Hon Hai spokesperson Ding Qi'an said that the move was motivated mainly by the need to respond to mainland China's new corporate taxation laws, and that Hon Hai's move of control to its Hong Kong subsidiary could lower taxes from 10% to 5% as a "local industry."
The company also announced a number of plans for new and further investments in the Chinese mainland. Among these were plans to invest USD 12 mln, USD 6 mln, and USD 47.95 mln into Foxconn (Yingkou), Foxconn (Langfang), and Foxconn (Kunshan), respectively. The company also plans to invest RMB 90 mln into expanding its consumer electronics and PC-related services in Shandong.
Keywords: corporate restructuring Hon Hai China Galaxy Fair Pacific Pacific Stand East Honest Foxconn (Far East) Ding Qi'an Yingkou computer contract manufacturer consumer electronics EMS Foxconn hardware Kunshan Langfang PC Shandong tax
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