Tax

It's been a busy year for tax authorities in 2010 and next year will be no different. Foreign companies are no longer privy to preferential tax treatments and non-resident enterprises can expect tightening on indirect equity transfers, treaty benefits and transfer pricing audits

Concentrate on tax policy transparency and consistent enforcement

Thresholds for preferential property-related tax policies raised.

Circular puts an end to FIEs' super national treatment.

Guangzhou imposes age restriction on purchase of property.

Shanghai restricts purchase of residential premises to only one more unit.

Tax filing requirements clarified for enterprise re-organisation.

The Measures detail the administration of general tax treatment of enterprise re-organisation, the administration of special tax treatment of enterprise re-organisation, and the tax administration of cross-border re-organisation.

The new supplemental enterprise reorganisation tax measures fail to open any new doors for cross-border reorganisations to qualify for special tax treatment. In addition, they still require fine-tuning with numerous details lacking