Robert Langston and Nick Farr outline the issues faced by UK companies investing in China
This article outlines the regulatory and tax hurdles faced by a UK company investing into China including:
restrictions on inward investment;
withholding taxes and restrictions on repatriation of profit; and
typical investment structures to reduce Chinese tax exposures.
A legal entity will be required for most activities undertaken in China which means that a taxable presence will be created in most cases.
Is there a taxable presence?
A UK company will only have a taxable presence in China if it has a permanent establishment as defined in the UK/China double tax agreement. The agreement defines a permanent establishment on the basis of the OECD Model Treaty.
In practice however the definition of...
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Robert Langston and Nick Farr outline the issues faced by UK companies investing in China
This article outlines the regulatory and tax hurdles faced by a UK company investing into China including:
restrictions on inward investment;
withholding taxes and restrictions on repatriation of profit; and
typical investment structures to reduce Chinese tax exposures.
A legal entity will be required for most activities undertaken in China which means that a taxable presence will be created in most cases.
Is there a taxable presence?
A UK company will only have a taxable presence in China if it has a permanent establishment as defined in the UK/China double tax agreement. The agreement defines a permanent establishment on the basis of the OECD Model Treaty.
In practice however the definition of...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
