Tax

Set-off of Value-added tax on purchases relating to imports clarified.

Land value-added tax of 1% levied on newly-established premises in Beijing.

Avoidance of double taxation issues between Hong Kong and the mainland clarified.

Hong Kong and foreign companies making frequent visits to mainland China are likely to be subject to PRC enterprise income tax, while foreign investors, lenders and technology licensors will face challenges in seeking the most preferential rates of PRC withholding tax.

This circular implements the .

Hong Kong and foreign companies making frequent visits to mainland China are likely to be subject to PRC enterprise income tax, while foreign investors, lenders and technology licensors will face challenges in seeking the most preferential rates of PRC withholding tax.

The new Enterprise Income Tax Law will take effect on January 2008. What changes should be expected by foreign investors?

Industrial land is subject to a new set of regulations in terms of granting procedures, granting prices, urban land use tax and requirements governing the conditions of using industrial land.

Tax issues clarified in the restructuring of foreign-invested banks.