China Tax/Business News Flash

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May 2015, Issue 20

SAT released new measures to support the “One Belt One Road” strategy

In 2013 Chinese President Xi Jinping visited Central Asia and Southeast Asia. During his visit, he had proposed to join hands to build a “Silk Road Economic Belt” and a “21st-Century Maritime Silk Road” (hereinafter referred to as “One Belt One Road” or the “Belt and Road”). Since then this innovative concept of “One Belt One Road” has been attracting a lot of attention from both China and even the rest of the world. On 28 March 2015, the National Development and Reform Commission (NDRC), Ministry of Foreign Affairs (MFA) and Ministry of Commerce (MOC) jointly released the <Vision and Actions on Jointly Building the “Silk Road Economic Belt” and “21st-Century Maritime Silk Road”> to set forth the general guidance and strategic principle of the “One-belt-one-road”. Subsequently, the State Administration of Taxation (SAT) released the <Notice Regarding the Tax Services and Administration to Implement the Development Strategy of the “One Belt One Road”> (Shuizongfa [2015] No.60, hereinafter referred to as “Circular 60”) to put forward a set of tax services and provide requirements of improving tax administration connected with the “One Belt One Road” strategy.

In this News Flash, we will introduce the main content of Circular 60 and share with you our interpretation of the direction of the SAT’s tax policies to complement the implementation of “One Belt One Road” strategy. Chinese enterprises “going abroad” should pay close attention to the SAT’s position on relevant tax matters as well as its next move in detailed tax policy-making.

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