New Tax Incentives for Reinvestments into China Go back »
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Time2018-02-01 | 09:00 - 10:30
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Venue:European Chamber Shanghai Office
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Address:
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Fee:Members: 200 RMB |
Non Members: 400 RMB
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The European Chamber is glad to invite you to an introductory seminar on the new dividends withholding tax deferral that will take place on Thursday, 1st February, 9:00-10:30 in the European Chamber Shanghai office.
On 28 December 2017, the Ministry of Finance, the State Administration of Taxation (SAT), the National Development and Reform Commission and the Ministry of Commerce jointly released Cai Shui [2017] No. 88 (Notice 88). Notice 88 allows a non-resident enterprise to defer payment of tax on dividends derived from a Chinese enterprise if, among other things, the non-resident enterprise directly reinvests the dividends into industries “encouraged” by the Chinese government. On January 2nd 2018, SAT released its Announcement [2018] No.3, which provides implementing guidelines for Notice 88.
The concept of the dividend tax deferral regime was first introduced by the State Council in a circular (i.e., Guo Fa [2017] No. 39) dated 8 August 2017 as a measure to attract foreign investment. After four months of silence, the four ministries released the dividend tax deferral implementing rules on the last working day of 2017. The timing does not appear to be coincidental, given the recent conclusion of the legislative process on US tax reform. While the US tax reform may have removed a principal disincentive of US multinational companies (MNCs) to repatriate earnings from their Chinese subsidiaries back to the US, Notice 88 appears to encourage MNCs to keep those earnings in China.
In this seminar, we will first examine what benefits MNCs can obtain from the Notice 88 tax deferral regime. We will then discuss the substantial requirements to receive the tax deferral. Finally, we will share some views about how MNCs may be impacted by this new regime. As we will discuss below, Notice 88 creates some uncertainties or issues that need to be clarified or managed. MNCs should carefully manage the transaction structure and documentation in order to avoid pitfalls created by Notice 88.
Agenda:
08:30 – 09:00 Registration
09:00 – 09:05 Welcome remarks by Mr. Alexander Prautzsch, Vice Chair, Finance & Taxation Working Group,
European Chamber
09:05 – 09:50 Presentation, by Mr. Ning Liu, Senior Economist, and Mr. Luis Zhang, Associate, at Baker McKenzie
09:50 – 10:25 Q&A
10:25 – 10:30 Closing remarks, by Mr. Alexander Prautzsch
Payment:
You can pay at the day of the event using cash or local debit/credit cards. The European Chamber can give you an official fapiao for amount exceeding 200 RMB, and this will be sent to you via courier a few days after the event.
Terms & Conditions:
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Cancellation Policy:
If you cannot attend an event for which you have registered, please cancel your registration no later than one business day prior to the event. If you fail to notify us of your cancellation in a timely fashion, you will be charged for event costs.
To cancel you can: 1) email: lamendivil@europeanchamber.com.cn, or 2) cancel online if you registered for the event through the website
Speakers
Mr. Ning Liu
Mr. Ning Liu
Mr. Liu had worked as a TP advisor in the United States for about a decade before joining Baker & McKenzie Shanghai office. His focus is on TP related tax planning, controversy, and documentation. Mr. Liu has a PhD in quantum chemistry and a master degree in financial engineering, and he's able to apply sophisticated statistical and econometrical tools to solve difficult TP problems. Mr. Liu also has great knowledge and experience on the US TP regulation system.
Over his career life, Mr. Liu advised many multiple national companies on their TP issues. These companies include worldwide industry leaders in manufacture, retailing, distribution, pharmaceutical, high-tech, insurance, mining, and etc.. The cases studied cover a wide scope, from intangible property valuation/migration to service transactions; from tangible property transactions to financial transactions. Mr. Liu has plenty of experience on solving TP related tax controversy issues for the clients. He was also deeply involved in many Advance Pricing Agreement (APA) negotiation processes. Some of these are bilateral APAs between China and US.
Mr. Luis Zhang
Mr. Luis Zhang
Mr. Zhang’s practice focuses on tax in PRC, with an emphasis on tax planning, tax controversy & litigation, as well as tax advice for M&A and corporate restructuring. He has also been involved in many direct and indirect transaction cases in the PRC. Before joining FenXun, Mr. Zhang worked at Baker McKenzie, and prior to that, he worked at the Shanghai Tax Bureau for 7 years, mainly focusing on international tax collection. Luis Zhang graduated from Wuhan University of Technology with an LL.B. (2005). He passed the PRC Bar Exam (2010). His experience includes:
‐ Advised a major US-based insurance company in the sale of PRC insurance company shares;
‐ Advised a leading digital production company on VAT structure and supply chain design;
‐ Advised a leading international express company on its overall PRC business with respect to the implementation of the VAT Pilot Program;
‐ Advised the first indirect equity transfer litigation with the PRC tax authority in China;
‐ Advised and implemented treaty benefit application for a major pharmaceutical company on its disposal of shares in a Hong Kong listed company;
‐ Advised and led tax due diligence investigation in M&A transactions, especially in pharmaceutical industry;
‐ Advised various transfer pricing investigations against foreign-invested companies in China;
‐ Advised a leading retail company on tax matters related to PRC corporate restructuring for IPO purpose;
‐ Advised a number of Fortune 500 companies on tax matters related to direct and indirect share transfer in PRC;
‐ Helped foreign-invested enterprises in applying various tax incentives;
‐ Advised foreign-invested enterprises or representative offices of foreign companies on tax dispute settlement in PRC, as well as prepared various tax documents;
‐ Advised foreign-invested enterprises on negotiations with the tax authorities, covering various controversial matters and helped the enterprises reach tax compliance settlements.
Mr. Alexander Prautzsch
Mr. Alexander Prautzsch
Alexander Prautzsch is a Tax Director at PwC China in the Shanghai office and is a member of the European Business Group.
Alexander is committed to advising European, particularly German-speaking clients, on their investments in China. He is focused on Chinese, German and international tax matters for corporate clients as well as their employees. Typical projects of Alexander include investment advisory, restructurings, profit repatriation planning, employee assignments, cost cross-charges and supply chain planning projects.
Alexander is a German certified tax advisor (Steuerberater) and has lived and worked in Shanghai since October 2005. Prior to working in China, Alexander worked for three years in the international tax department in Frankfurt. Alexander is a German native speaker and fluent in English and Mandarin.
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