• Anti-avoidance rules for offshore indirect share disposals in China
  • September 27, 2010
  • Law Firm: Vivien Chan Co. - Hong Kong Office
  • The State Administration of Tax ("SAT") has recently issued the circular Guoshuihan [2009] No. 698 ("Circular 698") addressing various tax issues for equity transfers by Non-China Tax Resident Enterprises (Non-TREs"). One of the most important issues arising from Circular 698 is the indirect equity transfer undertaken by Non-TREs outside China ("indirect transfer"). Circular 698 takes retroactive effec from 1 January 2008 and covers taxation of Non-TREs which transfer non-listed shares of China Tax Resident Enterprise ("TRE") or specific overseas intermediate holding vehicles with underlying TREs.