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On 16 March 2007, the National People's Congress ("NPC") of the PRC passed the long-awaited new Corporate Income Tax Law ("new CIT Law"). The new CIT Law represents a milestone in China's taxation history and provides a fundamental change in China's tax incentive policy in shaping and directing the future economic development of the nation. It adopts various international tax principles and practices, at the same time having certain tax rules bearing closer resemblance to the new Chinese accounting standards.
Given the widespread implications of the new CIT Law to foreign investors' operations in China, it is important for management to carefully analyse what these impacts are and design appropriate strategies. There will be a need for new thinking and strategy to minimise China income tax. Certain business re-alignment and planning ahead may also be necessary.
Seminars have been organised in December 2007 and January 2008 in multiple cities for our clients and key contacts covering:
- What are the key imminent actions to be taken before end of the year?
- What constitutes "effective management and control" in China and what precautionary actions should be taken to avoid foreign enterprise to be subject to China income tax on its worldwide income?
- The detailed implementation regulations ("DIR") may not codify taxation treatments for various forms of corporate restructurings in detail. Then what will be the direction of the tax rules for this type of activities? Would tax free restructuring still be provided?
- How foreign investment enterprises can qualify for tax incentives under the new income tax regime and what are the implications in satisfying the new parameters? What are the transitional relief under grandfathering?
- What are the impacts of the "Special tax adjustments" clause including general anti-avoidance rules, thin-cap rules, and transfer pricing documentation requirements?
- Last but not least, what long term plan should be formulated in view of the new challenges and opportunities?
Presentation slides
Read more by downloading the presentation slides below for your reference (due to the issuance of the DIR, there are different contents in different materials):
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