16 May 2012

Cash repatriation strategy in China/Hong Kong

In today's investment climate of tightening global liquidity, an increasing numbermore of our clients are asking us, “"How do we get our money out of China, to the parts of our business where it’'s needed most?”" Read more

14 May 2012

Recent source income ruling in Hong Kong

How do you differentiate profits sourced in Hong Kong and offshore and avoid disagreement on what types of activities are essential to Hong Kong-sourced income? Read more

03 Apr 2012

China Desk Newsalerts

The Chinese believe that spring is the most important season as it is the time to plan for the future and act on it. This Easter newsletter will give you an overview of all major changes in the legislation landscape of China and Hong Kong over the past 12 months. Read more

03 Feb 2011

China Desk Newsalerts - February 2011

We wish you a Happy New Year, a year full of success and achievement, a year rich with the affection of those who are dear to you, a mellow year with happiness and contentment.PwC Belgium’s first China Desk Newsalert of 2011 will give you an update on the latest news on Tax, Transfer Pricing, HRS and M&A topics. Read more

December 2010

• Tax
  A milestone in the Development of China's Double Tax Agreements. Read the full Newsalert
• Transfer Pricing
  Second Bilateral Advanced Pricing Agreement for Shanghai. Read the full Newsalert
• M&A Hot Spots
  Listing by Foreign companies in China. Read the full Newsalert
• Special features
  A solution to eliminate double taxation affecting cross-border employees between Hong Kong and China. Read the full Newsalert

November 2010

• Tax
  China's Anti-tax Avoidance Efforts against Overseas Indirect Equity Transfers Swings into Action.
• Transfer Pricing
  China's critical review of Contemporaneous Transfer Pricing Documentation by the SAT.
• M&A Hot Spots
  China outbound M&A deal activity up by more than 50%.
• Special features
  Transportation & Logistics: relevant tax policies in establishing Shanghai as an International Shipping Centre.

May 2010

• More collaboration on transfer pricing between Mainland China and Hong Kong
  The Chinese State Administration of Taxation ("SAT") and the Hong Kong Inland Revenue Department ("IRD") held a joint public seminar in Hong Kong on 13 May 2010, marking the very first public exchange between these two tax authorities of their thoughts and views on the controversial areas of transfer pricing and general tax avoidance.

April 2010

• China anti-avoidance enforcement targets automotive and pharmaceutical sectors in 2010
  The China Taxation News, an official newspaper under the State Administration of Taxation ("SAT") of China, recently reported that pharmaceutical and automotive industries and China tax authorities' focus in the year 2010 in respect of anti-avoidance administration.

March 2010

• Hong Kong - residency rule for offshore funds
  In his 2010/2011 Budget Speech delivered on 24 February 2010, the Financial Secretary of Hong Kong, Honorary Mr. John Tsang, reiterated the importance of promoting the asset management business in Hong Kong ... .
• Trend of China's International Tax Agreements
  To date, some multinational corporations ("MNCs") have been using the special purpose vehicles ("SPVs") in some low-tax jurisdictions to hold their investments in China.
• The Way Forward for Foreign Company Representative Offices in China – Analysis from Business Regulatory Perspective
  Following our earlier NewsFlash on the new taxation rules for ROs under Guoshuifa [2010] No. 18 ("Circular 18"), we will in this issue of News Flash take a closer look at the latest changes and future trend, from the regulatory compliance perspective, in connection with the administration of ROs as a form of vehicle for foreign investors to set up in China.
• Changes to Tax Rules for Foreign Companies Deriving Income through Establishments in China
  On 20 February 2010, the China State Administration of Taxation ("SAT") released tax circular Guoshuifa [2010] No. 19 ("Circular 19") entitled "the Administrative Measures for the Collection of Corporate Income Tax on Non-tax Resident Enterprises on a Deemed Basis" ...
• New Taxation Rules for Representative Offices of Foreign Enterprises in China
  On 20 February 2010, the SAT released the "Provisional Measures for Tax Collection and Administration of Representative Offices of Foreign Enterprises" ...

February 2010

• PKN Alert China -Tax authorities actively collecting 2008 transfer pricing documentation
  The introduction of new transfer pricing rules in China in early 2009, indicated that tax authorities were serious about protecting China's tax base and enforcing compliance by multinational companies.

January 2010

• Overseas Indirect Equity Transfer by Non-China Tax Residents under Scrutiny
  Overseas Indirect Equity Transfer by Non-China Tax Residents under Scrutiny: multinational corporations often interpose a Special Purpose Vehicle ("SPV") as an intermediate holding company for their investments in China, to avoid Chinese taxation upon divestment. Chinese tax authorities are scrutinising such SPV investment structures in the anti-tax avoidance combat, and issued a circular imposing extensive reporting requirements in case of indirect equity transfers.
• Salient points of indirect transfer under Circular 698
  Circular 698 covers the transfer of equity that is directly or indirectly held by Non-TRE investors in a China Tax Resident Enterprise ("TRE").
• Update of Taiwan's incentive schemes
  On 16 April 2010, the Taiwanese Legislative Yuan passed the Statute for Innovating Industries ("SII") which is applicable retrospectively from 1 January 2010. This SII replaces the old Statute of Upgrading Industries ("SUI") which expired at the end of 2009.
• New Chapter of China's Foreign Tax Credit Mechanism
  On 25 December 2009, the Ministry of Finance and the State Administration of Taxation ("SAT") have jointly issued the long-awaited circular Caishui [2009] No. 125, titled "Notice Regarding Relevant Issues on Tax Credits for Foreign Income Derived by Enterprises" ("Circular 125"), to set forth detailed guidance on the implementation of FTC Mechanism under the new CIT regime. Circular 125 took effective retrospectively from 1 January 2008.
• Hong Kong clarifies "source of profits" for cross-border contract and import processing businesses
  In a revised Departmental Interpretation & Practice Notes ("DIPN") No. 21 issued in December 2009, the Inland Revenue Department ("IRD") of Hong Kong views that contract and import processing arrangements should be dealt with differently for Hong Kong profits tax purposes. Complemented by recent case laws and decisions, this revision provides additional insight into the notion of the "source" of profits under such manufacturing arrangements in Hong Kong's territorial tax system.

December 2009

• Transfer Pricing "arrives" in Hong Kong
  On 4 December 2009, Hong Kong's Inland Revenue Department ("IRD") issued the much awaited Departmental Interpretation and Practice Notes ("DIPN") 46 on "Transfer Pricing Guidelines – Methodologies and Related Issues".
• Hong Kong – Revised DIPN 21 on locality of profits
  Hong Kong issued the Departmental Interpretation Practice Notes No. 21 – Locality of Profits ("DIPN 21") was first issued in 1992 and then revised in 1996 and 1998.