• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 12/3/2013

China - Business tax on transfer of financial commodities 

December 3:  China’s State Administration of Taxation issued guidance—Announcement [2013] No. 63—modifying the business tax treatment on the transfer of financial commodities.

Announcement 63 was issued in November 2013 and is effective 1 December 2013.

With Announcement 63, the transfer of financial commodities is no longer to be classified into four categories of stocks, bonds, foreign exchange, and others. Instead, these transactions will be consolidated into one category—financial commodities.

Trading gains and losses of different categories of financial commodities can now be offset across different categories within the same business tax reporting period.

KPMG observation

Tax professionals in China view this modification to the business tax policy as one generally favorable to taxpayers; however, the 1 December effective date gives rise to practical uncertainties.

Read a December 2013 report [PDF 300 KB] prepared by the KPMG member firm in China: New business tax treatment on the transfer of financial commodities

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