New M&A Tax Regulations Released

Posted by Reading Time: < 1 minute

May 11 – China’s Ministry of Finance and the State Administration of Taxation released new merger and acquisition tax rules on April 30.

It is the first time the Chinese government has issued a comprehensive set to address the issue of tax treatment for a variety of M&As.The rule is retroactive of January 1, 2008 in coordination with the Enterprise Income Tax Law.

Since the EIT law was implemented last January 1, 2008, there has been a missing part in the law that did not address the tax rule for assets and share restructurings on a tax-free basis.

The new rules will present ways for internal restructurings companies to maximize their China structures given the ongoing global economic crisis.

For more information on mergers and acquisitions in China, please contact Richard Hoffmann at legal@dezshira.com.

Further Reading:

China Briefing’s guide to Mergers & Acquisitions in China