Date Topic What is new?
SAT Announcement  No. 72 2013-12-12 2013-12-12 Procedural guidance for applying special tax rules to share transfers made by non-tax-resident enterprises Under PRC tax law, corporate income tax on capital gains derived from share transfers may be exempted at the stage of the share transfer and postponed to further share transfers, if the share transfers qualify for the application of special tax rules stipulated by the Tax CircularCaishui  No. 59.
However, in order to enjoy the benefits of the special tax rules, certain documentation must be recorded with the competent tax authorities. The SAT has issued various tax regulations to provide guidance regarding such recordal procedures. However, the previous regulations focused on share transfers made by tax resident enterprises. Since share transfers made by non-tax-resident enterprises (“non-TREs”) may equally be eligible for special tax rules, the SAT issued the current Announcementto clarify the relevant recordal procedures for non-tax-resident enterprises.
Non-TREs transferring shares in Chinese companies shall check whether the conditions are met to be eligible for the special tax rules. If yes, the procedural requirements set out in the SAT Announcement  No. 72 shall be followed when making the recordal with the competent PRC tax authorities.
SAT Announcement  No.75 2013-12-16
New rules regarding general VAT payer status application in the context of the BT/VAT reform The SAT issued the Announcement to provide detailed rules regarding application of general VAT payer status in the context of the Business Tax / VAT reform.
As stipulated in previous tax circulars, tax payers providing VAT taxable services mustapply for the general VAT payer status, if the relevant annual turn-over of such services exceeds RMB 5 million. Among other issues, theAnnouncement clarifies how the RMB 5 million turn-over shall be calculated. For enterprises providing VAT taxable services (with the relevant annual turn-over of below RMB 5 million), the general VAT payer status can also be achieved upon application, if the tax payers have a sound accounting system and maintain a fixed place of business.
Caishui  No.96 2013-12-30 2014-1-1 Export tax policies for e-commerce retail businesses On 30 December 2013, the Ministry of Finance (“MoF”) and the SAT jointly issued the CircularCaishui  No.96 regarding export tax policies for e-commerce retail businesses. The above Tax Circular clarifies that export VAT and consumption tax exemption or refund tax policies shall also apply to e-commerce export enterprises if certain conditions are met.
SAT Announcement  No. 4 2014-01-13 2014-01-01 New Sino-UK Double Taxation Treaty Coming into Force On 27 June 2011, the PRC and UK Governments amended the double taxation treaty (“new DTT”) between the two countries. On 27 February 2013, a Protocol to the new DTT was signed by both Governments.
The SAT announced that the new DTT came into force in the PRC starting from 1 January 2014 for profits, income and capital gains derived after 1 January 2014.
On the UK side, the new DTT shall apply to UK income tax and property tax declared after 6 April 2014 as well as company tax to be levied after 1 April 2014.
Companies of both countries shall pay close attention to the changes brought by the new DTT.