China tightens tax rules for foreign groups

Owners of Hong Kong-based companies with mainland assets will now face greater scrutiny and liability if they wish to sell them.

China tightens tax rules for foreign groups

China has tightened its rules governing the sale of domestic assets by foreign entities in a two-pronged assault on tax avoidance and the overheating property market.

As a result of the changes, which took effect from February 3 but have only now been published, foreign groups owning assets in mainland China through Hong Kong-based companies will face more scrutiny and liability if they wish to sell those assets. 

The move,...

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