WTS in China

In China, a new export control regime has gone live. Our colleagues from Asia give an overview.

China will see major changes take effect in 2022 regarding the tax honeymoon for expatriates - and this is definitely worth thinking about already now.

On 29 October 2020, China’s State Administration of Taxation released the “2019 Advanced Pricing Arrangement Annual Report” (2019 APA report).

One question may arise due to the coronavirus: does the coronavirus cause any impact on the IIT of individuals stranded in China?

China has recently launched certain measures to simplify VAT filing procedures, especially on VAT invoicing procedures.

Announcements concerning 2019 annual IIT filing and the COVID-19 epidemic.

China has been making steady progress in upgrading its technology for data collection

Preferential VAT policies for certain industries

Risk Control Under New Individual Income Tax

A draft Land VAT Law has been published to seek public’s feedback

China's SAT and Hong Kong’s Financial Services and Treasury Bureau signed “The Fifth Protocol on Avoidance of Double Taxation and Anti-Tax Avoidance Arrangement between Chinese Mainland and Hong Kong”

In August, Beijing’s Chaoyang District has kicked off a desk-top check on share transfer cases

 China allowing a refund of unutilized VAT credits to taxpayers who have a good tax compliance rating

The tax residency stipulations for non-domiciled individuals have been amended by the new individual income tax law

The two announcements are retroactively effective from 1 January 2019

VAT reduction is expected to boost the development of China’s economy, especially the manufacturing sector

The effective date of the new announcement is 1 April 2019

A series of measures have been implemented to encourage foreign trade and mitigate the damage caused by the trade conflict

The new Individual Income Tax laws have introduced six new deduction items for Chinese tax resident, called special additional deductions (SADs)

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The new Individual Income Tax (“IIT”) laws have substantially revised the taxation on non-domiciled individuals

The new policy aims at relieving their cash flow pressure

The tax incentive policies have been extended from pilot areas to the whole nation

It allows a one-off deduction of the full value of new equipment and instruments under the value of RMB 5 million / unit and continues to allow depreciation at a higher or faster rate for equipment or instruments over RMB 5 million / unit

BEPS-related action to improve the clarity regarding BO assessment and allow more non-abusing cases to enjoy tax treaty benefits

The new rules will be effective from 1 May 2018

A BEPS1 related action to improve the clarity in BO assessment and allow more non-abusing cases to enjoy tax treaty benefits

Tax audits: Tax issues that Chinese management are advised to pay attention to

Decree of the President No.61 to introduce the environment protection tax (EPT) has been enacted - new law has taken effect from 1 January 2018

Customs matters such as classification of goods, place of origin, and import valuation are covered by the advance ruling

Announcement 11 to clarify several significant issues on tax treaties clauses on permanent establishments, partnership enterprises, shipping and air transport as well as artists and athletes