Tax Newsflash

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Tax Newsflash

This newsletter series keeps you abreast of the latest tax and business developments.

Latest Tax Newsflash

China Tariff List 1 coming into force 

9 July 2018

Starting at 12:01 AM 6 July 2018 Eastern Day Time, the United States (U.S.) imposed additional tariffs of 25% on US$34 billion worth of Chinese goods ("U.S. Tariff List 1") imported into the U.S.

As a corresponding action, China increased tariffs on 545 products of U.S. origin ("China Tariff List 1") by 25% which became effective at the same moment as the U.S. tariffs (12:01 AM 6 July 2018 China Standard Time), based on Tariff Committee of State Council Announcement No. 5 dated 16 June.

The China Tariff List 1 includes 545 products such as agriculture products, aquatic products and automotive. The current bonded and tax relief policy will remain unchanged, and the increased tariff cannot be reduced or exempted.

(Bilingual version)

OECD Discussion Draft on Financial Transactions

9 July 2018

The Organization for Economic Cooperation and Development ("OECD") issued on 3 July 2018 the long awaited "Discussion Draft on Financial Transactions" (the "Discussion Draft") to seek feedback from stakeholders on a number of questions – with feedback due by 7 September 2018. Although this is a draft and is non-consensus document, it provides a useful reference to support the pricing of financial transactions.

The Discussion Draft has four main sections. The first section provides guidance on applying the arm's length principle for financial transactions, and the remaining three focused on specific types of arrangements. 

(Bilingual version)

Year 2018

OECD discussion draft on financial transactions
9 July 2018

China Tariff List 1 coming into force
9 July 2018

2018 Guidance issued on refund of uncredited input VAT to certain industries
2 July 2018

China tariff measures in response to the decision of the United States to impose tariffs on $50 billion of Chinese goods
19 June 2018

China to further cut tariffs on daily consumable products
4 June 2018

Challenges and opportunities in investing and doing businesses in Greater Bay Area from tax and business perspectives
1 June 2018

Pilot program launched for tax-deferred commercial pension insurance
24 May 2018

China cuts car and car parts import tariff
23 May 2018

China releases a favorable VAT policy for sales of cancer drugs
28 April 2018

SAT clarifies implementation issues for VAT rate cuts and conversion to small-scale VAT payer status
25 April 2018

China to remove customs duty on cancer drugs
24 April 2018

China imposes temporary antidumping measures on imports of sorghum from U.S.
18 April 2018

China announces VAT rates cuts
29 March 2018

China to consider increasing tariffs on U.S. goods
26 March 2018

VAT rate structure likely to be reduced from three to two
6 March 2018

GAC publishes implementation guidance on new customs advance ruling regime
2 February 2018

SAT releases 2017 Enterprise Income Tax Return Forms
29 January 2018

Advance ruling regime introduced for customs purposes
12 January 2018

New rules issued on deferral of withholding tax on dividends paid to foreign investors and reinvested in China
9 January 2018

Year 2015

Mainland Chinese tax treatment of investors in Mainland-Hong Kong mutually recognized publicly offered funds clarified
25 December 2015

Expansion of products eligible for processing trade relief: Are you impacted?
18 December 2015

SAT clarifies EIT incentives to stimulate technological innovation
11 December 2015

SAT clarifies new IIT incentives for qualifying employees and shareholders of HNTEs
10 December 2015

SAT clarifies new rules on tax treaty benefit claims
25 November 2015

SAT simplifies administrative procedure for resident enterprises to apply preferential EIT treatment
24 November 2015

Impact of Trans-Pacific Partnership free trade agreement on Chinese companies
18 November 2015

SAT issues "Catalogue of Codes for Tax Exemptions and Reductions"
18 November 2015

China enhanced super deduction for R&D expenses
13 November 2015

Common Reporting Standard (CRS) in Hong Kong
5 November 2015

Income tax incentives extended nationwide to stimulate technological innovation
3 November 2015

VAT zero-rated services: Scope expanded
3 November 2015

U.S. extends FATCA transition rules and modifies other rules
23 September 2015

New guidance issued to stimulate technological innovation
29 June 2015

SAT issues new rules on deduction of salaries and welfare expenses
29 May 2015

State Council suspends "clean-up" of preferential policies
21 May 2015

SAT issues new guidance following elimination of tax-related administrative approvals
19 May 2015

SAT issues tax audit plans for 2015
15 May 2015

Land appreciation tax and deed tax relief extended to promote mergers and acquisitions
29 April 2015

Guidance issued to facilitate corporate reorganizations
14 January 2015

State Council calls for changes to local preferential policies
8 January 2015

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