Many international corporations successfully trade and effectively ‘do business’ with China without the need to establish a permanent presence in the country. However, there remains a number of issues to be aware of to make sure that firstly, you don’t cross the barrier into “illegally” operating, and secondly, when the right time arises to consider an investment into the country in terms of funding an office.
Double taxation has been dubbed “one of the most visible obstacles to cross border investment,” leaving room for a significant amount of money to be saved under the almost 3,000 double taxation avoidance agreements (DTAs or DTAAs) signed between nations across the globe. This article examines how DTAs will impact your China investment strategy.
May 31 – On May 13, Hong Kong and the State of Qatar signed a comprehensive double taxation avoidance agreement (DTA). The DTA will greater enable cross-border trade connections between the two countries, and will encourage enterprises in Qatar to further expand their business networks in Hong Kong. With this latest DTA, Hong Kong has […]
In this article, we trace the development of double taxation agreements for China investment by summarizing the legal framework in four categories: Anti-avoidance foundations, qualifying as beneficial owner, claiming treaty benefits, and reporting offshore transactions.
In the first article of this issue, we look at the evolution of the legal framework of double taxation agreements in China, including the foundations of anti-avoidance, obligations in reporting offshore transactions, how to qualify as a beneficial owner and how to claim treaty benefits. In the next article, we outline the interpretations given in Circular 75 of the China-Singapore DTA, which was the first time that the Chinese tax authorities really opened up about DTA interpretations.
The term “ASEAN” is cropping up more often these days, yet still many businesses in China are unaware of what it is and why it is gaining in importance. The basic answer is fairly simple – free trade across Asia. That means reduced or zero customs duties across a space that includes the 10 ASEAN nations in Southeast Asia, and includes China, India, Australia, New Zealand, Japan and South Korea.