CB 2015 Using China's Free Trade and Double Tax Agreements Preview

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China has been assertive when it comes to
attracting and encouraging trade and investment
- especially so when it comes to entering into
Free Trade Agreements and bilateral Double Tax
Treaties. However, remains a disconnect when
it comes to many would-be foreign investors in
China, who are often unaware that their country
of origin may well have
treaties in place with China,
which, if used correctly,
can significantly reduce
their China tax burden and
thereby increase the overall
level of profitability of the
China based entity.
Tax is always a fast evolving
subject, and over the years
China has been shrewd in
how it uses tax concessions
to either encourage or
discourage trade in certain areas. Double Tax
Treaties are an important symbol of the mutual
desire of both China and the reciprocating
nation to boost trade, and should be very much
at the forefront of any strategic planning when
considering an investment into China.
However, the tax benefits that can be obtained
from enacting such treaties and concessions need
to be applied for - they do not automatically appear.
Local tax bureaus in China need to be made aware
of treaty status, and provided with supporting
documentation; otherwise, the opportunity will
be lost.
In this issue of China Briefing,
we examine the role of Free
Trade Agreements and the
various regional blocs that
China is either a member of
or considering becoming
so, as well as how these can
be of significance to your
China business. We also
examine the role of Double
Tax Treaties, provide a list
of active agreements, and
explain how to obtain the tax
minimization benefits on offer.
We wish you all a profitable 2015 and Chinese New
Year of the Sheep!
This Month’s Cover Art
by Huang You Wei ( 黄有维 )
Chinese Painting, 92x54cm
Wan Fung Art Gallery (云峰画苑)
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© 2015 Asia Briefing Ltd.
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Content is provided by
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No liability may be accepted for any
of the contents of this publication.
Readers are strongly advised to seek
professional advice when actively
looking to implement suggestions
made within this publication.
Introduction
With kind regards,
Sabrina Zhang