International Taxation in China

Chinese tax law affects corporations engaged in cross-border transactions with China. It may also impact the development of the international tax regime as China is increasingly engaged in international tax reform efforts, such as the G20/OECD base erosion and profit shifting (BEPS) Project. Chinese tax law is thus important to taxpayers, tax professionals and policymakers worldwide. However, it is a challenge to find comprehensive information and insightful analysis of Chinese tax law in English. This book deals with the Chinese international tax regime, focusing on the enterprise income tax and tax treaties. First, it covers the standard topics: inbound and outbound rules, withholding taxes, transfer pricing, tax avoidance, and base erosion and profit shifting. It then sets forth the technical tax rules in their specific Chinese legal and institutional context, for example, the approach of Chinese courts to the interpretation and application of tax law and the crucial role played by the State Administration of Taxation, which are significantly different from the role of their counterparts in Western countries. Examples, tables and detailed footnotes are used to help explain the rules in the legislation and the law in practice. Throughout the work, the author seeks to shed light on the Chinese way of thinking about international taxation.