Manufacturer China » China Tax

Australia’s “super profits” tax – is it legal?

admin — Sat, 18 Sep 2010 15:52:56 +0000

The Australian government recently announced its intention to impose a 40% tax on the “super profits” of mining companies. This is opposed to the general 30% (soon to be reduced to 28%) rate of tax for companies in Australia. This decision has come under some criticism – both from a policy and legal perspective. In [...]

Back at last

admin — Sat, 18 Sep 2010 15:52:56 +0000

My apologies for a long (certainly longer than intended) hiatus from blogging. I have just relocated back to Australia for personal reasons. With the burden of moving and starting a new job (actually not a completely new job as I am back with a firm I used to work for – Argyle Lawyers – before [...]

Tax Planning for Employees in China

admin — Sat, 18 Sep 2010 15:52:56 +0000

I wanted to draw attention to an article I wrote on this topic a few months back entitled “Employee Remuneration in China’s New Tax Environment” (the link will obviously take you to the article). I didnt mention it at the time for the basic reason that I was on my relocation enforced hiatus. I think [...]

Circular 698 used in Jiangsu Province to tax indirect equity transfer

admin — Sat, 18 Sep 2010 15:52:56 +0000

On January 2010, a multinational investment group disposed of its shares (100%) in a Hong Kong holding company which held a 49% interest in a Chinese joint venture. The transaction was subsequently investigated by the Jiangdu National Tax Bureau in Jiangsu Province. As a result of this investigation, the Jiangdu National Tax Bureau concluded [...]

SAT to Focus on Anti-avoidance

admin — Sat, 08 May 2010 02:17:36 +0000

In 2009 the State Administration of Taxation (SAT) undertook significant steps in relation to clamping down on anti-avoidance practices. However, taxpayers certainly should expect any lessening of the resolve of China’s tax authorities. I just came across an article published (in Chinese) on the SAT website that indicates (and confirms what Hwuason has been hearing) [...]

A final post on representative offices … for now

admin — Sat, 08 May 2010 02:17:36 +0000

There are a lot of myths and misunderstandings about representative offices … probably the biggest is the idea that there is a 10% tax on the gross expenses of ROs. I pointed out previously (see my response to Alexandre in the comments section) why such a statement is strictly incorrect and is unhelpful in terms [...]

Reminder: Seminar on tax changes for representative offices

admin — Sat, 08 May 2010 02:17:35 +0000

Hwuason Seminar Series
The End for Representative Offices?
On 20 February 2010 the State Administration of Taxation issued Circular 18/2010 outlining a new tax treatment for representative offices (ROs) of foreign enterprises in China.
Circular 18/2010 replaces several older circulars relating to the taxation of ROs and introduces significant changes. The new circular [...]

Breaking it Down: Taxation of Non-resident Enterprises

admin — Sat, 08 May 2010 02:17:33 +0000

I have been meaning to discuss this issue since early last month, but havent been able to get around to it. A few of my posts since then have sorted skirmished around the issue without taking it directly head on. This issue is obviously related to the issue of representative offices, but is of broader [...]

Tax Treatment of H-Shares

admin — Sat, 08 May 2010 02:17:33 +0000

One of the common questions that I am asked here, and in fact in my role at Hwuason, is in relation to the tax treatment of H-Shares – shares in Chinese companies that are listed on the Hong Kong stock exchange. I briefly mentioned this issue once before in a post (that was inspired by [...]

A few last riffs

admin — Sat, 08 May 2010 02:17:32 +0000

I have promised to base less posts on riffs from other blogs, but I have had a few drafts of posts that riff and still wanted to publish them. Accordingly, the start of my promise will be delayed for a few days (I hope it doesnt end up like my New Years resolutions every year).
Last [...]