Other Briefings
Changes to Chinese Input VAT Credits on Fixed Assets
Sept. 17 – The Ministry of Commerce and State Administration of Taxation jointly issued Circular Caishui (2009) 113 on Sept. 9, providing further clarification on the applicable methods of evaluating input VAT credits on fixed assets. The circular provides definitions for VAT purposes on buildings, structures, and attachments to land as well as the VAT […]
Employee Allowances and Benefits Now Taxable
Sept. 17 – China’s State Administration of Taxation (SAT) has announced that it will begin taxing certain employee allowances like telecommunications and transportation as part of its general campaign to require more companies to report their tax activities in detail and tighten tax collection. According to the SAT, twenty percent of an employee’s telecommunications allowance […]
China Clarifies Tax Deduction for Charitable Donations
Sept. 16 – The Chinese Ministry of Finance, State Administration of Tax and the Ministry of Civil Affairs have jointly issued Caishui (2009) No 85; which deals with the first batch of Charitable Social Organizations (CSO) eligible for the deduction of charitable donations for income tax purposes. According to China’s corporate income tax law, a […]
New Procedures Issued for Customs Declarations
Sept. 15 – China’s General Administration of Customs (GAC) has issued an announcement with a sample of the required additional documentation for assessing the value, classification and origin of goods effective October 1st. Following the GAC Announcement 49, “About Relevant Questions Concerning Additional Declaration of Imported and Exported Goods,” the additional forms will be used […]
China Tightens Double Tax Treaty Reporting
Sept. 14 – The State Administration of Tax (SAT) has issued Circular 124 that further regulates tax administration for non-residents availing of the benefits provided by double tax treaty arrangements on their income in China. Foreign executives based in China for limited periods over a 12 month time frame currently may not have to declare […]
China Tax Issues Concerning Employee Stock Options
Sept. 11 – The State Administration of Tax has issued Circular 461 to provide guidance to previous Circulars 5 and 35 concerning the individual income tax treatment for employment-related Stock Appreciation Rights (SARs), and Restricted Stock (RS). The new circular clarifies the tax position on such stock incentives, the determination of taxable income, the tax-trigger […]
Standard Chartered Issues Unique HK$150 Banknote
HONG KONG, Sept. 10 – The Standard Chartered Bank of Hong Kong will be issuing a unique HK$150 note to celebrate the 150th year of the bank’s operations in the city. The bank is the only one of three bank note issuing banks in the territory thus making the commemorative notes legal tender there and […]
Tax Clarification on Director’s Fees, 13 Month Salaries
Sept. 8 – The State Administration of Tax (SAT) issued Circular 121, clarifying four areas of individual income tax policy (IIT) namely director’s fees, 13 month salaries, criteria for recognition as a Chinese national residing overseas, and property splits associated with divorce. These are as follows: Director’s fees Director’s fees should be taxed under individual […]
