In this issue of the China Tax Update, we will discuss the following tax developments in China:
- Interest free loans between corporate group entities are exempt from VAT from 1 February 2019 to 31 December 2020
- SAT expands pilot scheme enabling small-scale taxpayers to issue special VAT invoices and further simplifies the verification process of special VAT invoices
- Anhui case: transfer pricing adjustment to intercompany service fees
- Notice 8 clarifies the IIT accounting methods available for individual partners in VC partnerships
- More small-scale and low-profit enterprises eligible to receive lower EIT rates
We will issue separate updates regarding recent IIT rules on non-domiciliary individuals and the VAT reform.
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