Reporting of Indirect Asset Transfers by Non-resident Enterprises

From: Shenzhen Tax Service, State Administration of Taxation

[Description]

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]

No.	Materials Name	Quantity	Remarks
1	Equity transfer contract or agreement	1份	Materials made in a foreign language shall be attached with the Chinese translation. The same applies to all other materials.
2	The shareholder structure charts before and after the transfer	1份
3	Two years' financial statements of the foreign enterprise and the subsidy which directly or indirectly holds Chinese taxable assets.	1份
4	A statement on whether the indirect transfer of Chinese taxable assets is made with legitimate business purposes, or to evade paying enterprise income taxes.	1份
5	Other relevant materials required by the tax authorities.

[Time Limit]

1. For Taxpayers

N/A.

2.For Tax Authorities

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

[Result]

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.

[Charge]

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.)