China Double Tax Agreements

    Below you will find the recommended measures to apply for an exemption under the Double Taxation Convention: if the income from employment belongs to a country that has not signed the double taxation treaty with China, the taxable person is entitled to a tax credit on the tax paid abroad on that income. China signed an OECD multilateral instrument in 2017. This Directive updates most of the double taxation conventions previously signed and contains many minor amendments. A striking update is the introduction of an anti-abuse test that will subsequently reduce the chances of double taxation being exploited. It is therefore essential for all companies benefiting from double taxation relief in accordance with the principles of the Treaty to review new updates and identify changes (if any) to their current tax systems. China has signed a double taxation agreement with Taiwan, Hong Kong and Macau. The agreement with Hong Kong prevents double taxation of Chinese income tax, foreign corporate income tax, and Hong Kong property taxes, wages and profits. China has been quick to adopt a policy of negotiating double taxation treaties and continues to do so. The PRC is also in the process of signing new tax treaties that replace existing tax treaties. On 23 March 2019, the GOC and Italy signed a new tax treaty. The main objective of this agreement is to encourage investment between the two countries and to set corporate taxation. The beneficiary countries of the double taxation convention in this region are Albania, Armenia, Austria, Belarus, Bulgaria, Belgium, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Latvia, Lithuania, Luxembourg, Macedonia, Malta (signed but not yet effective), Moldova, Norway, Sweden, Iceland, Ireland, Italy, the Netherlands, Poland, Portugal, Romania, Russia, Serbia and Montenegro, Slovakia, Slovenia, Slovenia, Spain, Switzerland, the United Kingdom (Great Britain), Ukraine, Uzbekistan and Bosnia and Herzegovina.

    China`s double taxation treaties (DSAs) can be used to benefit from a lower tax rate for overseas payments. However, DTA benefits do not automatically apply to everyone. China`s double taxation policy is extensive. However, the exemption from this double tax can be used Under Chinese law, a 10% tax on dividends is deducted when repatriating profits. However, this tax is reduced by 50% as part of the double taxation policy. . . .