New tax frontiers in China: taxing indirect share transfers

New tax frontiers in China: taxing indirect share...

Our View - Issue VII, May 2015

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Recent changes to China's tax regime now cast a wider net regarding potential tax obligations for foreign investors into the PRC. Though some safe harbor options are proffered, key changes include a more precise (and more broadly encompassing) definition of “Chinese taxable property” and the introduction of a withholding tax mechanism. Regardless, potential difficulties remain, requiring investors to closely scrutinize their transactions to remain compliant.  

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