A new tax circular addresses the issue of the definition of a beneficial owner under tax treaties, and puts a new burden on taxpayers. But many issues are left unclarified
The Circular states that conduit companies are not beneficial owners. It also sets forth factors that are not conducive to the recognition of an applicant's status as a beneficial owner.
These Measures shall apply to non-tax-residents with tax obligations in China that wish to avail themselves of the treatment under the agreements for the avoidance of double taxation executed by China with foreign governments and regions.