Tax

China’s beneficial ownership rules have become stricter in some places and lenient in others while anti-avoidance provisions have become more explicit. This article reports on what non-tax residents need to know about the new rules.

Tax credit policy has been revised to align with outbound investment needs.

Substantive business activities required for beneficial owner status

PRC outbound investment has received another boost via a new tax credit regulation that simplifies procedures and provides greater options to Chinese companies keen on multijurisdictional forays. It would be wise for these corporates to review and restructure their tax credit strategies to capitalize on the overnment’s commitment to expanding outward.

Tax deferral encourages foreign investors to re-invest

Tax deferral policy for FDI further clarified

A new tax deferral policy providing a temporary waiver of EIT to overseas investors investing in encouraged industries is aimed at attracting more foreign capital. If considering expanding further into the PRC, overseas companies should comprehensively review and readjust their current investment strategies to ensure they can benefit from the new tax deferral.

The scope of R&D tax super-deductibles clarified.

Issued: November 20 2017   Main contents: The Table of Resource Tax Items and Rates sets out four categories, energy minerals, metallic minerals,…

VAT burden lessened for asset management products.