Tax

On August 21 2006, Hong Kong and China signed The Arrangement for the Avoidance of Double Taxation on Income & Prevention of Fiscal Evasion (Arrangement),…

Issued: May 24 2006Main contents: Starting from June 1 2006, residential premises (including low-priced residential premises) with a unit floor area of…

Issued: July 18 2006Effective: as of August 1 2006 for Article 2Main contents: When calculating the taxable income for individual income tax on income…

Issued: July 6 2006Main contents: In view of the fact that export enterprises in bonded zones may handle customs declaration for export business in areas…

Promulgated: March 28 2006 Effective: May 1 2006Main contents: The Measures comprise:Part One: General ProvisionsPart Two: Dutiable Value of Imported GoodsPart…

After the third revision to PRC Individual Income Tax Law taxable income is now the monthly income less a deduction of Rmb1,600 for expenses.

The fourth phase of the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the PRC made headline news that trade between the two sides would be further liberalized. But is Hong Kong really given that much of a head-start?

The new rules revises six aspects including increasing the deductible amount for income from contracting for or leasing the operation of enterprises or institutions and clarifying tax returns procedures while further stipulating the duties of withholding agents in relation to tax withheld on the full amount for all personnel.

Prohibits direct offshore ownership structure, guaranteed fixed returns for foreign-invested real estate enterprise, and heightens scrutiny in the area of equity interests transfer and merger & acquisition in real estate-related industry.