State Administration of Taxation, Circular on Simplifying the Judgement of the Actual Tax Burden of the Country in Which a Foreign Enterprise Controlled by a Chinese Tax-resident Shareholder is Established

国家税务总局关于简化判定中国居民股东控制外国企业所在国实际税负的通知

March 17, 2009 | BY

clpstaff &clp articles &

Avoidance of double taxation for Chinese enterprises investing overseas.

Clp Reference: 3210/09.01.21 Promulgated: 2009-01-21

Issued: January 21 2009

Main Contents: The Circular stipulates that where a Chinese tax-resident enterprise or a Chinese tax-resident individual is able to provide information to prove that its/his/her controlled foreign enterprise is established in the US, UK, France, Germany, Japan, Italy, Canada, Australia, India, South Africa, New Zealand or Norway, the retained earnings of the foreign enterprise may be exempted from being deemed as dividends distributed and being counted as part of the revenue of the tax-resident enterprise for the period in question.

Related Legislation: PRC Enterprise Income Tax Law, Mar 16 2007, CLP 2007 No.3 p.21

clp reference:3210/09.01.21promulgated:2009-01-21

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]