Current Tax Law Developments in China
Sullivan & Worcester hosted "Current Tax Law Developments in China," sponsored by the International Tax Committee of the Boston Bar Association, of which Douglas Stransky is Co-Chair. Fuli Cao, a Jones Day tax partner from Beijing, China, who specializes in international and China tax matters, provided an overview of the significant recent developments in Chinese tax law. His talk encompassed the new Corporate Income Tax (“CIT”), which will significantly impact multinationals doing business in China, and the Value Added Tax (“VAT”) and Business Tax regulations (that came into effect on January 1, 2009). In addition, Mr. Cao discussed one of the most complex aspects of the CIT, which was introduced in January to provide guidance for transfer pricing (imposing mandatory contemporaneous transfer pricing documentation), advanced pricing arrangements, cost sharing agreements, controlled foreign corporations, thin capitalization, and general anti-tax avoidance.