China's Changing Tax Regime: What to Expect

April 2003 China Briefing

This issue contains updated regulations concerning the establishment and required capitalization of Holding Companies in China, aspects of Chinas changing tax regime, an overview of Chinas automotive industry and a city introduction to Guangzhou. Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates, contributes an article "Chinas Changing Tax Regime - What To Expect" following his recent meetings with Zhang Ziyang, Head of Chinas State Administration of Tax, including comment on basic reforms, VAT reform, the new scope of VAT, Input tax credits on fixed assets, VAT exemptions, and adjustments to business tax and income tax in China as WTO compliance starts to kick in. He also comments on new regulations concerning "Establishing Holding Companies in China", including comment on servicing your China subsidiaries, while Sacha Cody of Dezan Shira & Associates research arm contributes a piece "An Overview of the Automobile Industry in China". The top ten auto component manufacturers are listed.