The Institute held an annual liaison meeting with the State Administration of Taxation ("SAT") in July 2013 on various China tax issues. This seminar will highlight issues discussed at that meeting. It will also provide participants an opportunity to suggest questions to be raised with the SAT at future meetings.
Topics to be covered will include:
- Corporate Income Tax: Investment property – taxability of unrealized gains and deductibility of depreciation on current market value, and deductibility of service fees and management fees charged by overseas parent.
- Circular 698: Definition of "equity" and "transfer", whether indirect transfers would be substantively considered as direct transfers, and determination of whether an equity transfer would recognize only actual gains on transfer.
- Issues relating to Circular 59 reorganizations.
- Announcement 19: Some practical issues encountered on seconded employees creating a permanent establishment in China.
- Converting Business Tax to Value-added Tax ("VAT"): Royalties and rentals paid for cross-border transactions, tax exemption application procedures for export of services, transfer out of input VAT on tax exempt items, etc., together with the recent updates on the VAT reform.