On 26 May 2008, China’s State Administration of Taxation (SAT) issued the Circular on the Policy of Deed Duty payable in relation to the Receipt by a Wholly-Owned Subsidiary of Assets from its Parent Company (the “Circular”).

The Circular stipulates that during corporate reorganisations, the injection of capital into wholly-owned subsidiaries by corporate enterprises using their own land or property shall be considered as internal asset transfers within the same investment object, and hence would not attract deed duty.

For more information, please refer to Guoshuihan No. 514 of 2008 at http://www.chinatax.gov.cn/n480462/n480513/n480902/7934870.html