In this article, we explain what an indirect equity transfer is and explore the corresponding tax risks in China by studying a typical case.
We introduce tax avoidance arrangements as defined by Chinese tax authorities, discuss standard procedures for special tax investigations related to arrangements lacking reasonable commercial purposes, and provide practical suggestions for mitigating associated tax risks.
We discuss how China’s Golden Tax System works and what businesses can expect from Phase 4 of the system that could be launched sometime in 2022.
Mar. 1 – The profitability of multinational corporations (MNCs) will be the main focus of Chinese tax authorities during the annual inspection of related-party transactions in 2012, according to a recent report by Shanghai Securities News. China’s State Administration of Taxation (SAT) aims to establish a comprehensive enterprise index system this year, which will contain […]