Shanxi Case on the Indirect Share Transfer of non-resident company

According to the recent Chinese media reports, the Jincheng State Tax Bureau in the Shanxi province recently collected withholding tax in the amount of RMB 403 million from the indirect transfer of shares in a Chinese coal company, by a BVI company. The tax amount imposed is the single largest tax in an offshore indirect share transfer case to date. The implementation of Circular 698 since the year of 2010 and the recent practice of tax authority show, that the PRC tax authorities are strengthening the administration of Circular 698. The newsletter sets out the basic background information of Shanxi case, our observation and insights to several interesting issues reflected in the media report. If you have any questions or you would like to get a full context of this article in English version, please contact with us via email: newsletters@minterpku.com, or dial the number: + 86 10 5900 9170