News Flashes in short

28 August 2011

News Flashes in short

– Bulletin [2011] 46, recently issued by the Mainland China State Administration of Taxation, provides some more guidelines to the (new) personal income tax law, such as application of the new standard deduction and tax rates as from 1st of September 2011;

– Caishu [2011] 58, recently issued by the Mainland China State Administration of Taxation and its Ministry of Finance, provides for preferential 15% corporate income tax rates and tax holidays for certain Chinese regions and industries;

– The Dutch Ministry of Finance issued Decree 10 August 2011, nr BLKB/1291M, discussing the treatment of Trusts or Foundations by the Dutch Tax Authorities. In particular, it is said that the Dutch Tax Authorities will challenge Trusts or Foundations that have been moved to tax jurisdictions with an effective 10% tax rate or which have been dissolved;

– Bulletin [2011] 41, recently issued by the Mainland China State Administration of Taxation, determines that individuals are subject to a personal income tax rate of 20% on gains they receive from termination of investments; and

– The United Kingdom HM Revenue & Customs department recently published ‘Spotlight’ number 12 in which its challenges any tax avoidance schemes that take advantage of new disguised remuneration rules involving contractors, highly paid employees and those employed by recruitment agencies. In Spotlights, HMRC will provide some advice on tax planning to be wary of and identify specific tax schemes that will be challenged by HMRC. Please note that the HMRC next to this has proposed to create a blacklist of the “most contrived and aggressive” tax avoidance schemes.

If you have any questions regarding the above or other tax matters, please do not hesitate to contact us on +852 2804 0889 or by email taxservices@hkwj-taxlaw.hk.
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