China alert - Issue 10, March 2011
The State Administration of Taxation (SAT) has further clarified the income tax treatment of technical fees under China's tax treaties with the UK, India and Pakistan ("Relevant Treaties") respectively in Announcement 19 issued on 16 March 2011. Announcement 19 has given more clarity and certainty to an area where there have been a lot of local variations in interpretation and enforcement. It is encouraging to note that SAT has started taking the steps to the address this issue. Announcement 19 is effective from 16 March 2011.