Tax Compliance in Greater China

Transcription

1 m is,cch a Wolters Kiuwer business Tax Compliance in Greater China China, Hong Kong and Taiwan B363170

2 EXPANDED TABLE OF CONTENTS IX Chapter 1 INVESTMENT FRAMEWORK CHINA Introduction 4 Overview of the Foreign Investment Framework 4 Elements of the Foreign Investment Regime 5 Investment policies 5 Business entities 31 Regulatory/development agencies 39 Restrictions on foreign investment Restrictions on foreign investment in real property segment in China 44 Investment incentives 47 Labour relations.'. 48 Intellectual property 49 Dispute resolution 50 Chapter 2 TAX COMPLIANCE CHINA Overview of Corporate Income Tax 52 Introduction Overview of the tax system 52 Corporate income tax 58 Checklists, forms & tables 97 Overview of Personal Income Tax 184 General introduction 184 Basis of liability to tax 186 Relevance of residence 186 What is employment income? 189 Tax rates 190 Deductions/reliefs 191 Basis of assessment 192 Exemptions 199 Tax collection and administration 201 Reporting requirements placed on employers 202 Departing employees 203 Individual Income Tax ("IIT") Self-Reporting and Guoshuifa [2006] No Sample self-reporting 207 Other Taxes 212 Introduction 212 Tax Compliance in Greater China: China, Hong Kong and Taiwan

3 Value-added tax ("VAT") 213 Business tax ("BT") 231 Consumption tax ("CT") 239 Stamp duty ("SD") 244 Real property tax ("RPT") 245 Deed tax ("DT") 246 Land value added tax ("LVAT") 248 Resource tax ("RT") 250 Special levy on oil exploitation business 250 Tax Incentives 252 Introduction 252 Tax incentives under the corporate tax regime 253 Forms of incentives 255 Tax sparing considerations 275 Value-added tax ("VAT") incentives 276 Exemptions/refund on certain imports 277 Procedures for exemptions 278 Purchase of domestically manufactured equipment 279 High-technology industries 281 Business tax incentives 282 Amount exempt from business tax 282 Approving procedures 283 Disposal of financial assets 283 BT exemptions 283 Outbound payment on software fees 284 Financial services 284 World Trade Organisation implications 285 Dealing with tax laws in the jurisdiction 286 The Tax Compliance Environment 288 Introduction 288 Timing aspects of the compliance process 288 Self assessment system 294 Tax assessors 296 Imposition of penalties 297 Tax audits 299 Disputes 300 The Roles of Ruling 302 Overview 302 Lines of inquiry 302 > 2007 CCH Hong Kong Limited

4 XI Chapter 3 INVESTMENT FRAMEWORK HONG KONG Introduction 308 Investment framework 308 Judicial system 309 Regulatory controls 309 Business entities 309 Labour relations 310 Intellectual property 310 Tax legislation 310 Territorial taxation concept 311 Corporate income tax 311 Source 312 Deductions 312 Personal income tax 312 Property tax 313 Estate duty 313 Stamp duty 313 Use of Hong Kong in international tax planning 314 Tax planning for the inbound investor 315 Service and management fees 315 Tax planning for the outbound investor 315 Taxation of derivatives 316 Mergers and acquisitions 316 Tax compliance 316 Rulings 317 Anti-avoidance 317 Statute of limitation 317 Investment Framework 318 Introduction to investment framework 31 8 Overview of investment framework in Hong Kong 318 Elements of the foreign investment regime 318 Chapter 4 TAX COMPLIANCE HONG KONG Overview of Corporate Income Tax 330 Introduction overview of the tax system 330 Corporate income tax 337 Overview of Personal Income Tax 350 Basis of liability to tax 350 Relevance of residence 350 Employment income 351 Taxation of certain types of income 351 Source of employment 356 Tax rates 357 Deductions/relief 358 Tax Compliance in Greater China: China, Hong Kong and Taiwan

5 XII Reporting requirements placed on employers 359 Penalty for non-compliance 360 Other Taxes 361 Introduction 361 Property tax 361 Estate duty 364 Stamp duty 364 Documents subject to stamp duty 366 Tax Incentives 375 General overview 375 Specific industry "concessions" 376 Reinsurance of offshore risk 377 Financial institutions 377 Contract processing 379 General concessions 380 General comments 385 Dealing with Tax Laws in the Jurisdiction 386 The Tax Compliance Environment 392 The Role of Rulings 406 Chapter 5 INVESTMENT FRAMEWORK TAIWAN Investment Framework 418 Introduction 418 Overview of investment framework 419 Elements of the foreign in investment regime 422 Chapter 6 TAX COMPLIANCE TAIWAN Overview of Corporate Income Tax 446 Introduction overview of the tax system 446 Corporate income tax 447 Overview of Personal Income Tax 460 Introduction 460 Basis of liability to tax 460 Tax rates 461 Relevance of residency 461 Deductions/reliefs 461 Exemptions 463 Tax administration 464 Other Taxes 465 Value-added tax 465 Stamp duty 467 Customs duty 467 Commodity tax CCH Hong Kong Limited

6 XIII Property and land taxes 469 Securities transaction tax 469 Tax Incentives 470 Dealing with Tax Laws in the Jurisdiction 474 The Tax Compliance Environment 475 Introduction 475 Business tax 475 PSE income tax 475 Lines of inquiry 475 The Role of Rulings 479 Lines of inquiry 479 INDEX Index China 483 Index Hong Kong 489 Index Taiwan 493 Tax Compliance in Greater China: China, Hong Kong and Taiwan