Pursuant to the "Circular on Issues Concerning Treatment of Corporate Income Tax in Enterprise Restructuring Business" (Cai Shui [2009] No. 59, hereinafter "Circular 59"), the corporate income tax treatment for equity transfers can be categorized into two approache...

When a parent company receives dividends from a subsidiary, the accounting and tax treatment often don't match. This is especially relevant for groups where an overseas parent — such as an Italian shareholder — holds a subsidiary in China. Here is a plain language breakdow...

In July 2026, the State Taxation Administration issued Announcement No. 13 of 2026, introducing new rules for the application of special tax treatment to enterprise mergers and divisions. The new rules apply to restructurings with an effective date on or after 1 January ...