BVI companies should review holding structures
With new information, tax avoiders could be identified
Issue: September 2011
Keywords (click to search):
BVI companies
holding structures
tax
Zhong Lun
Hwuason Lawyers
A tax information exchange agreement between China and the British Virgin Islands should prompt relevant companies to re-examine their holding structures, say counsel.
Last month on June 22, the State Administration of Taxation (SAT) released the Announcement on the Entering into Effect and Implementation of the 《Agreement Between the Government of the People’s Republic of China and the Government of the British Virgin Islands for the Exchange of Information Relating to Taxes》 and the Protocol Thereof (国家税务总局关于《中华人民共和国政府和英属维尔京群岛政府关于税收情报交换的协议》及议定书生效执行的公告) (the Agreement). The Agreement had come into effect on December 30 2010 and was applicable to income derived on or after January 1 2011. It applies to individual income tax and enterprise income tax of the PRC.
The Agreement allows PRC...
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