Category Taxation in China

China Sets New Tax Goals

March 17, 2010 Taxation in China

Chinatown Parade celebration of 60 years of the PRCThe Government of the People’s Republic of China (PRC) has set out five macro-level goals that will be upheld in its approach to taxation policy in 2010, and taxation authorities of all levels must also follow three new “transformations”, in order to best implement the new goals.

At the recently convened National Taxation Policy and Regulation Working Conference in Shenzhen, Xie Xuezhi, Deputy Administrator of the State Administration of Taxation (SAT), relayed the Chinese Government’s praise to national tax authorities in implementing tax policies and regulations in 2009. He said that in 2010 the Government intends to build upon the progress by implementing five new wide-reaching goals in tax policy implementation.

The new goals consist of sustaining the PRC’s stable and rapid ec...

Read More

China’s Tax Revenue Grows 9%

January 18, 2010 Taxation in China

Chinese Embassy SealTax revenues collected in the People’s Republic of China rose by 9.1 percent in 2009 compared to the previous year.

In a statement published by the Chinese State Administration of Taxation on January 15th the department declared that the country’s tax revenues had risen by CNY524.1 billion in 2009, bringing the collections to CNY6.31 trillion (approx. USD928). The tax revenues growth exceeded Chinese Government set targets by 1.1 percent after an unexpected economic resurgence in June.

Domestic retail sales revenue showed the largest percentage rise in 2009, reaching CNY476.1 billion, 85.4 percent higher than 2008. The increase came as a result of government policies aimed at encouraging domestic consumption...

Read More

Rush of Tax Treaties in December

December 17, 2009 International Tax CooperationTaxation in CanadaTaxation in ChinaTaxation in EUTaxation in FranceTaxation in GreeceTaxation in IrelandTaxation in NetherlandsTaxation in New ZealandTaxation in SingaporeTaxation in SwitzerlandTaxation in UK

UK/Malaysia Double Taxation Agreement protocol signingIncreasing fiscal transparency was an important issue in the economic and political spectrum of the 2009 year. With only a few weeks remaining in 2009, December happened to be one of the most active month of the passing year, with Governments around the globe completing efforts made in negotiations of Double Taxation Agreements (DTA) and Tax Information Exchange Agreements (TIEA).

In an unprecedented step, Switzerland wishes to cease ratification of its DTA with France in protest at the French authorities’ handling of account data stolen from HSBC in Geneva. On December 9th, Eric Woerth, French Budget Minister, confirmed that the French Government had paid €500 million to a former HSBC-Switzerland employee who provided them with details on 130,000 accounts...

Read More

Global Business Confidence is Improving

December 15, 2009 Taxation in ChinaTaxation in IndiaTaxation in UKTaxation in USA

Freefall Friday: $84b - worst day in 21 yearsThe world is still suffering from an economic slump, but confidence and business outlook across the globe is beginning to see a marked improvement.

According to research by international law firm Eversheds, published on December 14th, there is a resurgence in business confidence and future outlook across key global economic centres, and the Eastern markets are showing the most significant improvements. The report engaged 600 senior executives to show the effect of the economic downturn and its results on their confidence in London, New York, Shanghai, Mumbai and the United Arab Emirates (UAE).

The study reports that executives in Shanghai, UAE and Mumbai have highest levels of confidence for the next 12 months, though all respondents believe that New York will continue to be the most signi...

Read More

Auto Purchase Tax Cut to Continue into 2010

December 2, 2009 Taxation in China

Chinese Policewoman directing traffic at junctionWith booming car sales in the last months, experts and Chinese officials are confident that the country’s automobile sales tax cuts will continue next year.

Although there is no official confirmation of any future moves, in his last interview Chang Xiaocun, head of China’s Commerce Ministry’s department of market system development, was quite confident that the Government is interested in extending the auto purchase tax cut program. Additionally to his words, some experts believe that the tax cut program could even be extended to more types of passenger cars.

The auto purchase tax cut program was started by the Government of the People’s Republic of China on January 20th, 2009, and reduced auto sales tax by 50% on cars with engine capacities below 1.6L...

Read More