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Reporting of Indirect Asset Transfers by Non-resident Enterprises

Writer:   |  Editor: Stephanie Yang  |  From: Shenzhen Tax Service, State Administration of Taxation  |  Updated: 2022-05-13


When there is indirect transfer of Chinese taxable assets, the  seller, the buyer or the underlying Chinese resident enterprise may report such  transfer to the tax authority in charge.

[Materials Required]



Materials  Name




Equity transfer contract or agreement


Materials made in a foreign  language shall be attached with the Chinese translation. The same applies to all  other materials.


The  shareholder structure charts before and after the transfer



Two  years' financial statements of the foreign enterprise and the subsidy which  directly or indirectly holds Chinese taxable assets.



A statement on whether the  indirect transfer of Chinese taxable assets is made with legitimate business  purposes, or to evade paying enterprise income taxes.



Other relevant materials  required by the tax authorities.

[Time Limit]

1. For Taxpayers


2.For Tax Authorities

Instantly after acceptance of materials that are complete,  compliant with the legal form, and fully filled out.


Results will be given by tax authorities.

[Notice to Taxpayers]

1.Taxpayers are responsible for the authenticity and legality of  the materials they submit.

2.Taxpayers only need to visit the tax authorities once if the  materials are complete and the statutory conditions for acceptance are  satisfied.

3.The following criteria shall be used to determine the tax  authority in charge of the underlying matter:

(1) If the taxable assets being transferred are attributable to an  establishment or place in China, the tax authority in charge of such  establishment or place shall be the tax authority in charge.

(2) Apart from the circumstance described in Item (1), if the  assets being transferred are real property in China, the tax authority in charge  of the deducting and withholding obligator or at the place of the real property  shall be the tax authority in charge.

(3) Apart from the circumstance described in Item (1) and (2), if  the assets being transferred are equity interest investments by Chinese resident  enterprises, the tax authority in charge of the deducting and withholding  obligator or the enterprise being transferred shall be the tax authority in  charge.

4.Addresses of taxpayer service halls and the website of e-tax  bureau are available on the web portals of tax authorities or by dialing  the(86-755)12366 tax service hotline.


Free of charge.

(Note: The text above is a translation of the  Chinese version for reference only. In case of any discrepancy between the two  versions, the original published Chinese version shall  prevail.)