Treasury Management FAQ's

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In the jurisdiction of China exist different tax exemptions, available of the doing business in China. Which they are?

The most important exemptions are Interest on government bonds. The interest received from government bonds by foreign enterprises or FIEs are exempt from income tax. However, any gains from the transfer of such bonds will be consolidated with other income of the taxpayer to determine their tax liabilities. Capital gains from the sale of certain shares of public companies Regarding foreign enterprises trading stocks of Chinese companies listed on the stock exchanges, any capital gains from the sale of B shares or overseas stocks issued by Chinese companies are exempt from income tax if the relevant shares are not held by any establishments or legal entities of the foreign enterprise in China. Any dividends received by foreign enterprises from B shares or overseas stocks of Chinese companies are also exempt from income tax in China. Business tax on certain inter-bank loans Local currency renminbi ("RMB") loans between foreign banks or foreign invested banks approved to conduct business in China may be exempt from business tax.