Investing in China: New Treaty Increases Attractions of Using a UK Holding Company Structure
14 July 2011
The UK and Chinese governments signed a new double tax treaty at the end of last month. With no dividend withholding tax, an exemption from tax for dividends and chargeable gains (subject to meeting the necessary conditions), a falling corporation tax rate and a bilateral investment treaty with China, the UK is already an attractive holding company location for investments into China. When the new treaty enters into force (most likely to be next year), the UK’s attractiveness will be even stronger than it already is.