It has been reported that the Anhui Tax Bureau has rejected application of a taxpayer for the benefits provided for under the tax treaty between China and Barbados. The case is summarized below.
A foreign shareholder (the Applicant) of an equity joint venture in Anhui province, who is located in Barbados, applied for the 5% dividend withholding tax provided for under the tax treaty between China and Barbados. Since the decision of the approval had consequences…