On 31 December 2021, the Ministry of Finance (“MOF”) and State Taxation Administration (“STA”) released two announcements (i.e.,
MOF STA Announcement [2021] No.42 and No.43) officially extending some preferential Individual Income Tax (“IIT”) policies
July 2019 – Mauritius: An Investment Gateway to Africa for Chinese Companies
Introduction
With its strategic geographic location between China and Africa and its stable regulatory environment, Mauritius looks set to strengthen its position as an investment gateway to Africa under China’s “Belt and Road” initiative.
This article discusses the tax factors that contribute to the success of Mauritius as a preferred investment jurisdiction and highlights some of the structuring possibilities available to Chinese entities looking to invest in Africa. These tax factors include a simple tax system, fast expanding double taxation tax agreements (“DTAs”), and being white-listed by the Organisation for Economic Cooperation and Development (“OECD”).
July 2019 - Economic Substance in Bermuda, the Cayman Islands and the BVI – Understanding the Requirements
In December 2018, Bermuda, Cayman Islands and the BVI, along with many other jurisdictions with low or zero rate of corporate income tax, passed legislations that introduced increased economic substance requirements for certain entities.
The legislations are designed to meet the requirements outlined by the European Union’s (“EU’s”) intergovernmental Code of Conduct Group (“CoCG”) on Business Taxation, which are aimed at jurisdictions with low or zero rate of corporate income tax.
May 2019 - China Adopts E-commerce Law – Its Tax Implications
Total e-commerce trade, including commodity and services trade amounted to RMB 29,160 billion for the year 2017, an 11.7% growth from the previous year. In respect of cross-border e-commerce on commodities, it amounted to RMB 90.2 billion, an 80.6% from 2016.
According to the Public Notice (2019) No. 39 jointly issued by SAT, the Ministry of Finance and General Administration of Customs on March 20th, 2019, transportation tickets including train tickets, air tickets and passenger tickets will be VAT deductable from April 1st , 2019 for companies.
From April 1st, 2019 to December 31st, 2021, taxpayers of manufacturing and living service industries are allowed to enjoy a further 10% credit according to the current deductible input tax.
February 2019 - Tax Relief for Small and Micro Enterprises
Mazars Newsletter - February 2019
On January 17th, 2019, the Ministry of Finance and the State Administration of Taxation (SAT) issued the Notice of Comprehensive Tax Relief for Small and Micro Enterprises (Cai Shui [2019] No.13). The new policy will be valid from January 1st , 2019 to December 31st, 2021.
This new policy will help entrepreneurs to start their business in China with lower tax liabilities.
