Using China’s Free Trade & Double Tax Agreements – New Issue of China Briefing Magazine

January 9, 2015 Posted by China Briefing Reading Time: 3 minutes

The newest issue of China Briefing Magazine, titled “Using China’s Free Trade & Double Tax Agreements,” is out now and available as a complimentary download in the Asia Briefing Bookstore through the month of January.

Contents:

Understanding China’s Bilateral & Multilateral Agreements
China’s Proposed New Silk Road Free Trade Area
Taking Advantage of China’s Double Tax Agreements

Tax is always a fast evolving subject, and over the years China has been shrewd in how it uses tax concessions to either encourage or discourage trade in certain areas. Double Tax Treaties are an important symbol of the mutual desire of both China and the reciprocating nation to boost trade, and should be very much at the forefront of any strategic planning when considering an investment into China.

China has been assertive when it comes to attracting and encouraging trade and investment – especially so when it comes to entering into Free Trade Agreements and bilateral Double Tax Treaties. However, remains a disconnect when it comes to many would-be foreign investors in China, who are often unaware that their country of origin may well have treaties in place with China, which, if used correctly, can significantly reduce their China tax burden and thereby increase the overall level of profitability of the China based entity.

This issue of China Briefing is of special interest to:

China Traders

Chief Executive Officers

Tax Experts

Purchasing Managers

Asia Import-Exporters

Financial Directors

Strategic Analysts

Trade Policy Reviews

Asian Manufacturers

Legal Counsel

Supply Chain Directors

Business Consultants

In this issue of China Briefing, we examine the role of Free Trade Agreements and the various regional blocs that China is either a member of or considering becoming so, as well as how these can be of significance to your China business. We also examine the role of Double Tax Treaties, provide a list of active agreements, and explain how to obtain the tax minimization benefits on offer.

However, the tax benefits that can be obtained from enacting such treaties and concessions need to be applied for – they do not automatically appear. Local tax bureaus in China need to be made aware of treaty status, and provided with supporting documentation; otherwise, the opportunity will be lost.

We wish you all a profitable 2015 and Chinese New Year of the Sheep!

Tax, Accounting, and Audit in China 2015 This edition of Tax, Accounting, and Audit in China, updated for 2015, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in China, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who must navigate the complex tax and accounting landscape in China in order to effectively manage and strategically plan their China operations.

Double Taxation Avoidance in China: A Business Intelligence Primer
In our twenty-two years of experience in facilitating foreign investment into Asia, Dezan Shira & Associates has witnessed first-hand the development of China’s double taxation avoidance mechanism and established an extensive library of resources for helping foreign investors obtain DTA benefits. In this issue of China Briefing Magazine, we are proud to present the distillation of this knowledge in the form of a business intelligence primer to DTAs in China.

Strategies for Repatriating Profits from China
In this issue of China Briefing, we guide you through the different channels for repatriating profits, including via intercompany expenses (i.e., charging service fees and royalties to the Chinese subsidiary) and loans. We also cover the requirements and procedures for repatriating dividends, as well as how to take advantage of lowered tax rates under double tax avoidance treaties.