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Chinese Tax Law and Policy (LAWS90231)

Graduate courseworkPoints: 6.25Online

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Overview

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June - Online
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Chinese tax law and policy play an important role in doing business with China. This subject offers a general introduction of the Chinese tax regime, and also addresses the core elements of Chinese enterprise income tax, anti-tax avoidance measures and tax treaties which usually are the key factors influencing the investment locations, business structures as well as merger and acquisition deals when involving China. Furthermore, the subject will bring you up to date through exploring the impact on China by the BEPS project and the newly agreed Two-Pillar Solution, both of which are of high attention from business, especially the ones which exposed to the risk of tax avoidance or subject to the new global digital tax rules when doing business in China.

Principal topics will include:

• A general introduction to the Chinese tax regime: source of law, main players, tax mix, tax administration and dispute resolution.
• China’s Enterprise Income Tax: the governing laws, taxpayers, source rules, tax rates, calculation and filing obligations, and tax incentives.
• China’s tax treaties: bilateral tax treaties and multilateral conventions, taxing business profits, permanent establishment, taxing dividends, interest and royalties, credit method. 
• China’s anti-tax avoidance measures and tax cases: transfer pricing rule, thin capitalisation rule, CFC rule, GAAR and taxing offshore indirect shares transfers.
• Impact on China by the G20-OECD BEPS Project and the Two-Pillar Solution to address the tax challenges arising from the digitalisation of the economy.

Intended learning outcomes

A student who has successfully completed this subject will:

  • Understand the general structure of the Chinese tax regime, the core elements of the China's Enterprise Income Tax and tax treaties.
  • Be able to apply the core elements of the Chinese enterprise income tax and tax treaties to clients doing cross-border business with China.
  • Understand the context of the Chinese anti-tax avoidance measures and their implementation approaches, and be able to analyse the potential risk of being exposed to Chinese anti-tax avoidance investigations through reviewing the clients' business structure and transactions.
  • Have an advanced understanding of the rationale and approaches for China taxing the offshore indirect shares transactions, and be able to compare with the other countries' laws and practice on the same type of transactions, and communicate, orally and in writing an explanation, and detailed critical analysis of the relevant cases.
  • Understand and be able to analyse the impact on China by the latest trends and developments by the tax law at the global level including policy and law, especially by the G20-OECD BEPS Project and the Two-Pillar Solution to address the tax challenges arising from the digitalisation of the economy.
  • Be able to apply new knowledge in advising to clients who are doing business with China or plan to do business with China.

Generic skills

  • Legislative, treaty and case sources research, analysis and writing skills in Chinese tax law and international tax law.
  • The ability to understand the politics and policy of Chinese taxation, enabling analysis of tax law and treaties in context.
  • Communication skills (oral and written) in class presentations, and in writing and applying tax law and treaties to problems.

Last updated: 31 January 2024