China alert - Issue 15, May 2011
For various tax and business reasons, many multinational companies are considering different forms of corporate reorganisation involving equity/share payments or equity contributions. However, under the existing regulatory guidelines, many practical issues need to be resolved to make such reorganisations feasible and practical to implement, especially for transactions involving foreign and foreign-invested enterprises. The Ministry of Commerce is currently collaborating with other authorities to draft additional guidelines on equity contribution/payment aiming to resolve these practical issues. KPMG has been invited by the central Ministry of Commerce to share our experience and practical concerns, and to provide feedback on the draft guidelines.