China tax newsletters

Mazars’ comments on tax issues in the People’s Republic of China

November 2018 - 5-Year Rule Under the New Individual Income Tax Law – Exposure Draft of the “Implementation Rules”

On 31 August, the Standing Committee of China’s National People’s Congress formally approved the Amendments to the PRC Law on Individual Income Tax (the “New IIT Law”). Please refer to Mazars’ Tax Commentary issued in September 2018, for a summary. The exposure draft of the “Implementation Rules of the new Individual Income Tax Law” (the “Draft Implementation Rules”) was issued on 20 October for public consultation. The deadline for public consultation was set at 4 November of this year.

January 2018 - Withholding Tax (“WHT”) Deferral for Foreign Re-investment in China

Under the Enterprise Income Tax Law before the change, dividends derived by a non-tax resident enterprise (“Non-resident entity”) are subject to a withholding tax at 10% unless a more favourable tax treaty benefit applies. In August 2017, the State Council released measures to improve the business environment for foreign investors in China, including the proposal to allow foreign investors to enjoy a withholding tax deferral treatment.