New IIT Laws for the “Six-Year" Rule
The new IIT laws replaces the old "five-year" lookback period rule with a "six-year" rule to adapt to the new definition of resident that uses the 183-day test.
China Tax Newsletter
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January 2022 - China Tax News
On 31 December 2021, the Ministry of Finance (“MOF”) and State Taxation Administration (“STA”) released two announcements (i.e., MOF STA Announcement [2021] No.42 and No.43) officially extending some preferential Individual Income Tax (“IIT”) policies
“聚焦粤港澳大湾区政策”主题系列之二 —— 珠海横琴：横琴粤澳深度合作区建设
粤港澳大湾区由香港、澳门2个特别行政区和广东省珠三角9市（广州、深圳、珠海、佛山、中山、东莞、肇庆、江门、惠州）组成，涉及到三个关税区、三种货币、三种法律制度。粤港澳三地，是我国开放程度最高、经济活力最强的区域之一。
CHINA’S NEW FOREIGN INVESTMENT LAW AND ITS IMPACT ON FOREIGN INVESTMENT ENTERPRISES
On 15 March, 2019, the National People’s Congress has passed the new Foreign Investment Law of PRC (the “Foreign Investment Law” or the “New Law”), which has come into force on 1 January, 2020. The new law marks the next level of Chinese government’s opening-up policy to enhance a more transparent business environment and to ensure that domestic and foreign enterprises compete on a level playing field, with equal treatment under the unified legislative rules and processes. It is also an attempt by the Chinese government to respond to international criticism from the US in light of the still on- going US-China Trade Negotiation. In particular, the Foreign Investment Law seeks to address common complaints from foreign businesses and governments, such as by explicitly banning forced technology transfers.
July 2019 – Mauritius: An Investment Gateway to Africa for Chinese Companies
Introduction
With its strategic geographic location between China and Africa and its stable regulatory environment, Mauritius looks set to strengthen its position as an investment gateway to Africa under China’s “Belt and Road” initiative.
This article discusses the tax factors that contribute to the success of Mauritius as a preferred investment jurisdiction and highlights some of the structuring possibilities available to Chinese entities looking to invest in Africa. These tax factors include a simple tax system, fast expanding double taxation tax agreements (“DTAs”), and being white-listed by the Organisation for Economic Cooperation and Development (“OECD”).
With its strategic geographic location between China and Africa and its stable regulatory environment, Mauritius looks set to strengthen its position as an investment gateway to Africa under China’s “Belt and Road” initiative.
This article discusses the tax factors that contribute to the success of Mauritius as a preferred investment jurisdiction and highlights some of the structuring possibilities available to Chinese entities looking to invest in Africa. These tax factors include a simple tax system, fast expanding double taxation tax agreements (“DTAs”), and being white-listed by the Organisation for Economic Cooperation and Development (“OECD”).
July 2019 - Economic Substance in Bermuda, the Cayman Islands and the BVI – Understanding the Requirements
In December 2018, Bermuda, Cayman Islands and the BVI, along with many other jurisdictions with low or zero rate of corporate income tax, passed legislations that introduced increased economic substance requirements for certain entities.
The legislations are designed to meet the requirements outlined by the European Union’s (“EU’s”) intergovernmental Code of Conduct Group (“CoCG”) on Business Taxation, which are aimed at jurisdictions with low or zero rate of corporate income tax.
May 2019 - China Adopts E-commerce Law – Its Tax Implications
Total e-commerce trade, including commodity and services trade amounted to RMB 29,160 billion for the year 2017, an 11.7% growth from the previous year. In respect of cross-border e-commerce on commodities, it amounted to RMB 90.2 billion, an 80.6% from 2016.
April 2019 - VAT input on domestic transportation
According to the Public Notice (2019) No. 39 jointly issued by SAT, the Ministry of Finance and General Administration of Customs on March 20th, 2019, transportation tickets including train tickets, air tickets and passenger tickets will be VAT deductable from April 1st , 2019 for companies.
April 2019 - 10% additional VAT input deduction
From April 1st, 2019 to December 31st, 2021, taxpayers of manufacturing and living service industries are allowed to enjoy a further 10% credit according to the current deductible input tax.
Want to know more?
Peter Law Partner, Tax Advisory Services - Shanghai
Emilio WANG Jianmin Managing partner, Guangzhou - Guangzhou Tianhe District
