The Central Government urges optimisation of policies to boost M&A activities in China - the tax aspect
The State Council released a circular Guofa  No.14 (Circular 14) on 7 March 2014, urging various government bodies to improve policies so as to encourage mergers and acquisitions (M&A) in China. The direction for tax policy improvement is to relax the corporate income tax (CIT) corporate restructuring rules with respect to special tax treatment (STT) and to improve land appreciation tax (LAT), business tax (BT) and value-added tax (VAT) policies involved in M&A transactions. Investors should monitor the development in this area and assess the potential implications for their future M&A activities and corporate restructuring strategies in China.
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