ARTICLE · 08 NOVEMBER 2012

China Tax Regulation Update - October 2012

CMS Cameron McKenna Nabarro Olswang

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A number of tax regulations in China have recently been updated.

ChinaTax

Charlie Sun

A number of tax regulations in China have recently been updated. To summarise these updates, we have prepared a detailed table on the changes showing how they will affect organisations.

To view the table, please see below:

Table

Circular Number	Issuance Date	Effective Date	Topic	What is new?
Ministry of Commerce Decree [2012] No. 8	2012-9-21	2012-10-22	Provisional Regulations on Capital Contribution by Means of Shares in Foreign Invested Enterprises	For various reasons, a foreign company holding direct shares in its Chinese subsidiaries may wish to transfer such shares to a Chinese entity ("Transferee Company"). In the past, such share transfer could be made in the form of a capital contribution only if the Transferee Company had a Chinese Holding Company ("Holdco") status. Otherwise, it had to be structured as a share transfer where the Transferee Company paid a share price to the foreign

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