This article originally appeared in International Tax Review, a sister publication of China Law & Practice
Notice 7 is effective from February 3 2015, though applies to transactions from January 1 2008 that have not received an assessment from the tax authorities.
Foreign companies could be caught in China's new indirect transfer rules
In a strong indication of its growing commitment to enforcing tax compliance, China's State Administration of Taxation released updated indirect transfer rules to replace Notice 698. professionals say the more stringent tax rules, which include safe harbour regulations, withholding tax obligations of the buyer, and clarifications of reasonable commercial purpose, are both welcome and concerning
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