Other Briefings
IBM Expands into Accounts Receivable Lending in China
Jan. 11 – International Business Machines (IBM) has launched a financing business in China indicating how the company is diversifying into service, consulting and financing businesses. The company’s first accounts-receivable lending license in the country will apply to the Tianjin Binhai New Area, a special economic zone located in the northeast city of Tianjin. Chip […]
China Raises Interest Rates to Cool Economy
Jan. 8 – China’s central bank hiked interest rates on three-month treasury bills by around about 4.04 basis points for the first time since August in an effort seen to temper the overheating economy. The yield on three-month treasury bills were changed from 1.3280 percent yield to 1.3684 percent. The move led to a hike […]
New Issue of China Briefing Magazine: Preparing for Annual Audits in China
Jan. 7 – The January/February issue of China Briefing magazine is out now and available for download (click on the image – complimentary subscription required). It’s annual audit season in China, a time when companies take stock of their business on the mainland, prepare annual corporate income tax filings, and review any outstanding issues that […]
Tax Administration Clarifies Foreign Tax Credits Relating to Overseas Income
Jan. 7 – China’s Ministry of Finance and State Administration of Taxation jointly issued Circular Caishui (2009) 125 on December 25, 2009, providing clarification on the foreign tax credit scheme (FTC) mechanism concerning overseas-sourced income for taxpayers. This will affect expatriates whose remuneration is paid partially in their home domicile or externally from China. Based […]
Hong Kong Issues Guidelines on Transfer Pricing
HONG KONG, Jan. 7 – The Hong Kong Inland Revenue Department (IRD) recently released DIPN 46 to illustrate how transfer pricing principles will be applied in the territory. The 55 page document explains how OECD Transfer Pricing Guidelines will be practiced in Hong Kong particularly how OECD transfer pricing methodologies will work with its own […]
China May Expand Pilot Property Tax Program Nationwide
Jan. 6 – China may implement a pilot property tax program nationwide reports Shanghai Securities News. Morgan Stanley said that China may levy a tax on commercial real estate in “selective regions” before applying a levy on residences in an effort to temper the heated property market. It will take some time before the pilot […]
Clarifications on Corporate Tax Issues on Liquidation
Jan. 4 – The State Administration of Taxation has issued a circular on issues related to corporate income tax (CIT) and company liquidation. According to Circular 684, companies must immediately inform local tax authorities of the time they enter the liquidation period. Companies are to consider the liquidation period as a separate tax year along […]
China Capital Gains Tax May be Levied on Indirect Share Disposals Offshore
Dec. 29 – The Chinese tax authorities may impose withholding tax on non-resident enterprises that indirectly dispose equity interests in Chinese resident enterprises outside China if there is an abuse in the form of organization. Issued on December 15, the circular Guoshuihan [2009] No.698 has several key points: Where a foreign investor indirectly transfers equity […]
