Tax services

Worldwide tax summaries Asian Tax and Advisory Webcast Series

China Tax/Business News Flash 

View this page in: 简体中文版 

Jul 2014, Issue 17

New requirement for Chinese TREs to disclose outbound investment information


Recently, the State Administration of Taxation (SAT) released the Public Notice Regarding Information Disclosure by Tax Residence Enterprises (TREs) on Outbound Investment and Overseas Income (SAT Public Notice [2014] No.38, hereinafter referred to as Notice 38) with the aim to improve the reporting quality of Chinese TREs’ outbound investment information and to strengthen the tax administration on these companies.

Notice 38 will be effective from 1 September 2014. According to Notice 38, where a Chinese TRE’s shareholding in an overseas company meets a prescribed threshold, it should report relevant information in its provisional and annual Corporate Income Tax (CIT) filing, including the information with respect to the TRE’s outbound investments, profits sharing/distribution of its Controlled Foreign Corporations (CFCs), and the financial statements of the overseas company where applicable. Failure to report may trigger potential penalties and tax adjustments made by the in-charge tax authorities.

Other issues of China Tax/Business News Flash
Visit our Tax Library.
Contacts
Edwin Wong
Partner
Beijing
Tel: +[86] (10) 6533 2100 Email
Kevin Wang
Partner
Beijing
Tel: +[86] (10) 6533 3331 Email
Howard Yu
Partner
Beijing
Tel: +[86] (10) 6533 2007 Email
May Zhou
Partner
Shanghai
Tel: +[86] (21) 2323 3108 Email
Jenny Chong
Partner
Shanghai
Tel: +[86] (21) 2323 3219 Email
More contacts