Setting up holding companies to enhance control and reduce taxes is a winning tax avoidance strategy. Within China, reducing tax burden is part of the obligation of the company finance director and it is also IPO Pang’s passion to facilitate, advise and strategize with the client to achieve a net result of payment of as little taxes as legally possible. This effort requires advanced planning, a thorough knowledge of the tax laws, customs and practices within China. It also requires thinking outside of the box to create a defensible tax strategy that will pass legal muster. Once the strategy is set, execution of the plan is another service that IPO Pang facilitates the client in advancing. IPO Pang is often asked by clients to file routine taxes, report and negotiate with the local tax inspector and to coordinate all necessary monthly reporting and payment, including annual tax audits and payments, and operation of the “official receipt” (fa piao) system. We advise clients on the most efficient way of handling their tax obligations and often we are asked to execute on their behalf as their outsource local tax compliance officer. Since repatriation of funds earned in China will have material impact on tax obligations, IPO Pang is often asked to advise early on in the process to determine the best corporate structure and service arrangements that will lower the tax burden and still enable the enterprise to achieve its business objectives. IPO Pang subscribes to the principal that it is not how much one earns that matters, it is how much one takes home.