This article originally appeared in International Tax Review, a sister publication of China Law & Practice
The Asset Management Association of China (AMAC), a mutual fund regulatory agency, and the Beijing Municipal State Tax Bureau (BSTB) laid out their tax plan at an informal meeting of investors on February 26, though neither has yet made a formal announcement on the tax details.
Beijing Tax Bureau to levy 10% tax on QFII investors, with no deductions for losses
Inward investors have expressed concern about proposals that China will levy a 10% capital gains tax on profits earned by foreign investors, with no opportunity to deduct for losses. While some tax advisers welcomed the clarity, some funds may struggle to pay the higher-than-expected tax bills on gains earned over five years between 2009 and 2014
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