Taxpayers in China transferring equity interests in Chinese companies are being advised to conduct appraisals to determine the fair market value of the transferred interest.
China's State Administration of Taxation has issued guidelines to reduce the risk of double taxation of gains where businesses transfer restricted stocks that they hold on behalf of other businesses.
The SAT is targeting the use of intermediate Barbados holding companies China has warned against the use of intermediate Barbados holding companies by foreign companies looking to invest in China.
A case in China highlights that individuals involved in indirect share transfers of Chinese companies, regardless of whether they have been completed or not, are being targeted by the authorities.
Week four of the Supreme Court hearing saw Vodafone’s counsel continue his argument that if the company is to be targeted then the corporate veil of all Indian operating subsidiaries would need to be lifted.
