In 2020, taxpayers should be alert for the following China tax developments and trends.

China has continued to improve access to tax incentives and provide new regulatory support for innovation. At the same time, renewed rigour is being applied to ensure that tax incentives are claimed appropriately. Bin Yang and Nicole Cao detail the landscape.

China’s capital markets continue to expand and open up, offering a range of innovative new investment channels. Henry Wong explores the tax challenges arising under each of these channels.

In 2018, Hong Kong SAR enacted TP legislation, a significant step in aligning its tax rules with international standards. Karmen Yeung, Irene Lee and Tanya Trantallis set out the key features of the rules.

The past year has seen a further evolution in China’s tax treaties, in particular in integrating impactful BEPS permanent establishment (PE) changes. The maturity of work on global tax reforms hints at more profound changes ahead, write Chris Xing and Conrad Turley.

As policymakers in China and elsewhere inch towards a new global tax framework to deal with the challenges of digitalisation, many domestic tax law and administration issues are yet to be resolved for China’s digital economy. Sunny Leung and Conrad Turley take a look.