IN THIS ISSUE
Taxation of Foreign Investment Partnerships
Hailed as a significant improvement, the new FIP rules fail to directly address the taxation of foreign partners. Many FIP tax issues will remain outstanding until the release of official rules. Information exchange is strengthened to prevent tax avoidance. Page 1
Business in China
Because the inherent limitations on China Rep Offices, they seldom make sense. Termination of employees in China varies significantly from US practices and is something many American companies get wrong in China. Page 1
Accounting and Auditing
The World Bank’s Report on accounting and auditing in China was recently published. While significant strives have been made, the report concludes that more effort is needed to enhance the capacity of regulators and further strengthen the accountancy profession in China. Page 3
State Owned Asset Restructuring.
New regulations were enacted to regulate transfer of large amounts of shares by state-owned shareholders, to extinguish supervision of the state-controlled shareholders and state-owned shareholders and to make transactions public and transparent. Page 6
Tax Treaty Benefits
China has clarified when nonresidents may benefit from tax treaties. Page 7
