Insight into the New CIT Law and its implementing details

New CIT Law has established a new system of preferential tax treatments; Treatment of existing tax incentives and the transitional rules; Re-defining taxpayer;Introduction of "tax resident" and "non-tax resident" concepts to differentiate taxpayers; enhancing and strengthening anti-tax-avoidance rules.

* Terms need to be clarified
* Tax collection and management frame under new CIT Law
* Transition period

10:00 FQAs Session

Deputy Director-General
Policy and Legislation Dept. SAT

Mr. Yang Yuanwei is responsible for setting up national taxation mechanism, completing tax legislation system, studying in tax policies continuity.
He is specialized in analyzing the burden of taxation system and taxation collection structuring.
Mr. Yang published a lot of articles related to Chinese tax developments overview.

Important aspects that need to be get clarified in the CIT regulations with particular emphasis on those that may have impact on tax incentives and restructuring.

Given the widespread implications of the new CIT Law to foreign investors' operations in China, it is critical for management to carefully analyse what these impacts are and design appropriate strategies. How can foreign investment enterprises qualify for tax incentives under the new income tax regime and what are the implications in satisfying the new parameters, what are the transitional relief under grandfathering, and is their current holding structure still the best structure ?

* General Provisions and taxable Income
* Tax incentives past, present and future.
* Withheld taxes and other taxes, and implications on structure.
* Q&A

Russell Brown, ManagingPartner
Tax and Business Advisory Services LehmanBrown International Accountants

Is year 2008 a MESS ?!

-- The Enterprise Income Tax Law of the People's Republic of China was promulgated on March 16, 2007 and shall come into force as of January 1, 2008.

-- China's State Council on November 29 passed a draft of regulations aimed at helping to enforce the country's new corporate income tax law to ensure the implementation of the new law.

-- There will be cancellation of Certain Preferential Policies. Hunderds of tax cirluars will come out

* Explainations on upcoming circulars
* What will the SAT's position be regarding legal vs. economic ownership of intangibles?

15:00 FQAs Session

Deputy Director-General
International Tax Dept. SAT

Grey areas in the new CIT Law system

As a tax professional, you might wondering China State Council will decide that when the new Corporate Income Tax Law takes effect on 1 January 2008, dividend distributed by Foreign Invested Enterprises ("FIEs") to their foreign investors will no longer enjoy tax exemption, and will be subject to possibly a 10% withholding tax. Any updates on this matter? Or, for a foreign company with losses from the past years, are they allowed to carryforward the losses to future years to offset profit after the new tax law takes effect on January 1, 2008? Too many grey area need to be clear..... , in this session we are going to discuss some hot issues as follows,

* Expense Deduction
-- Advertising and Promotion Expense
-- Entertainment Expense
-- Management Fee
-- Sponsorship Expense
-- Non Deductibility of Commercial Insurance Premium
* Withholding Tax
* Tax Exempt Income
* Key State Supported High-tech Enterprise
* Venture Investment Enterprise
* Others

Deputy Director
International Tax Dept. SAT

Look into the problems and challenges occurred during the first quarter of 2008

New passed CIT Law leaves many uncentainty. Numerous circulars need to be followed up. This keynote session looks at the latest developments of the Tax Reform and the Unification Coperate Income Tax for domestic and foreign enterprise.

* Tax collection and Taxation management focus in the year 2008
* Problem summary
* How to narrow the gap between domestic compa nies and FIEs
* Preferential areas
   -- 5 + 1 special zones and western area
* Tips

10:00 FQAs Session
Director - General
Income Tax Dept. SAT

Transfer Pricing under the new CIT law

Article 41 of the New CIT law permits sharing of the cost incurred in joint development and transfer of intangibles assets, or joint provision and acceptance of labour services by Enterprises and their affiliates under the independent transaction principle in computing the taxable income. Current draft implementation rules suggest the use of cost contribution or anticipated benefit ratios to share cost.

* Arm's Length Standard
* Cost Sharing
* APA
* Disclosure and Documentation
* ObligationsAuthority to Deem Profit
* Interest Expense Deductibility Considering Thin Capitalization Rules
* Interest on Owed Tax
* Q&A

Yu Qisheng, Partner
Transfer Pricing, PricewaterhouseCoopers

Anti - Advoidance updates and TP developments

Recently the SAT is enhancing anti-avoidance They also strengthen negotiation, signing, surveillance and implementation of APA work to set up a comprehensive relatedparty transactions analysis system. In the CIT law and its implementing regulations they are some points need to be noted:

* Current transfer pricing law frame
* Gap beween China and advanced countries on anti-avoidance
* Legislative updates
* Anti - advoidance progress in China
* Interest on Owed Tax

15:00 FQAs Session
Deputy Director
Anti - Advoidance, International Tax Dept. SAT

How to Face the Tax Audit and Investigation under newCIT law Era

Documentation Requirements are in final draft stage. Recently, intangible transactions have been a major focus. The State Administration of Taxation ("SAT") have recently commenced a nation-wide tax audit exercise focusing primarily on royalty payments made by Chinese companies to overseas affiliates.

* Recent enforcement oncorporate tax
* Criteria of targets selection
* How a tax player handle the tax audit
* Grab the motive and agenda for the tax authorities
* Good preparations for the tax officials
* Performing a tax- risk assessment of the FIEs or representative offices
* Other issues
* Q&A

Deputy Director, Anti - Advoidance, SAT
Yu Qisheng, TP Partner, PwC

Cindy Li, Tax Director, Microsoft Greater China Cindy has more than eighteen years of professional tax experience in both government (1988-1995, SAT) and business areas.

As a tax director of Microsoft, in charge of PRC as well as Microsoft HK's tax matters. Responsible for all tax consulting projects and supervise tax compliance work as well. Accumulate rich experience in IT industry.