China Double Tax Agreements

African countries with double taxation rules include Algeria, Botswana (signed but not yet effective), Egypt, Ethiopia, Morocco, Mauritius, Nigeria, Seychelles, South Africa, Sudan, Uganda (signed but not yet valid), Zambia and Zimbabwe. China has totalization agreements with nine countries: Canada, Denmark, Finland, Germany, Luxembourg, the Netherlands, South Korea, Spain and Switzerland. There are also totalization agreements signed with France, Japan and Serbia, but which have not yet entered into force. In recent years, China has signed numerous double taxation conventions to promote foreign investment and economic integration with foreign companies. These tax treaties specify whether the right to deduction is due to the country of origin or country of residence, which excludes the likelihood of double taxation. It should be kept in mind that the Chinese tax authorities conduct a thorough investigation into the transaction links between their foreign subsidiaries in order to eliminate the possibility of operating an MNC in order to reduce its taxable income by using the transactions of the near party. Therefore, in order to avoid delays, it is recommended that a Chinese company clearly state its intention to obtain a double taxation premium. This strategy will save time for both the applicant and the tax authorities. The resource library of Dezan Shira – Associates has a complete section devoted to Chinese DTA agreements and containing copies (free access). You can also contact the company in the event of specific requests regarding the implementation of Chinese SDRs within your corporate structure, china@dezshira.com The benefits of the double taxation policy can be used in the same way by Chinese nationals and multinational companies. In addition, this double tax break is also available for foreign companies that charge for services for each company established in China (which is subject to a WHT).

China`s double taxation policy is important.

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