China Disregards U.S. Intermediary to Tax U.S. Company's Indirect Share Transfer
China's State Administration of Taxation has recently approved a request by the Zhejiang National Tax Bureau to tax a U.S. company's transfer of shares in a Delaware incorporated intermediate holding company that had owned a company resident in China. The request was granted under the anti-abuse provisions of Circular 698, which grants taxing rights for China on certain indirect transfer of sha…
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