BIZCHINA / Center |
Tax policy issued for wholly-owned foreign banks(Xinhua)Updated: 2007-04-08 09:59 China's Ministry of Finance and State Administration of Taxation have jointly issued a circular on taxation for wholly-owned foreign banks that are transformed from foreign bank branches.
According to the Regulations on Foreign-funded Banks promulgated in November 2006, eligible foreign banks are allowed to incorporate as wholly-owned banks in China, and foreign bank branches are permitted to be transformed into wholly-owned foreign banks. In the process of transformation, the circular says, the transfer of property rights and equities from a former bank branch to the transformed wholly-owned bank are exempted from business and value-added taxes. A transformed wholly-owned foreign bank should continue to enjoy tax holidays the former bank branch was being enjoyed. If the tax holidays expired before the transformation, the new wholly-owned foreign bank should not to enjoy them, according to the circular. (For more biz stories, please visit Industry Updates) |
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