China tax newsletters
Mazars’ comments on tax issues in the People’s Republic of China.
May 2014 - New tax treaty between China and Germany
On 28 March 2014, China and Germany entered into a new Double Taxation Agreement (DTA) and protocol (together referred to as “the New DTA”).
Apr. 2014 - New tax treaty between China and France signed in 2013
On 26 November 2013, China and France signed a new Double Taxation Agreement (“new DTA”) and an accompanying protocol in Beijing. Once it enters into force, expected early 2015, it will replace the current tax treaty of 1984 (“the 1984 DTA”). The new DTA will not only provide new treaty benefits but also bring in challenges.
Dec. 2013 - Further expansion of scope of the PRC value added tax (“VAT”) reform
On 12 December 2013, the Ministry of Finance (“MOF”) and the State Administration of Taxation (“SAT”) jointly issued a circular Caishui [2013] No. 106 (“Circular 106”) which will be effective on 1 January 2014. Circular 106, issued together with four appendixes, sets out various fine-tuned implementation details of the VAT reform and replaces its predecessor Circular Caishui [2013] No. 37. This circular marks another important milestone of the VAT reform as the scope of VAT-able industries has been expanded to include two major industries: railway transportation and postal service sectors. Once the railway transportation sector is included in the pilot program, all of China’s transportation sectors will be covered in the VAT reform.
Dec. 2013 - Detailed implementation rules for filing of exemption on VAT-able cross-border services in Beijing
The Beijing State Tax Bureau issued the Circular Announcement [2013] No. 22 concerning the issues related to the filing of VAT exemption and clearance of VAT paid during the previous pilot period for VAT-able cross-border service (“Announcement No. 22”) on 25 November 2013. It prescribes guidelines for the application of VAT exemption treatment with regard to VAT-able cross-border services in Beijing.
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