Tax

Cost sharing agreements need to be filed with the tax authority.

Cost sharing agreements need to be filed with the tax authority.

Tax relief procedures simplified.

Issued: June 10 2015Main contents: The Draft replaces pollutant discharge/emission fees with the environmental protection tax on the strength of a law.…

Administration of the levying of taxes may only be provided for in laws.

Enterprises enjoy tax breaks for investment in Western China.

The tax authority may proceed with an adjustment for any expenses paid to an overseas affiliate not in compliance with the arm's length principle.

China's State Administration of Taxation (SAT) recently issued a notice regarding payments involving related offshore parties. China has openly declared its plans to crackdown on tax evasion, so the issuing of new regulations come as no surprise

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