The State Taxation Administration in mainland China promulgated the “Announcement on the Levy of Individual Income Tax on Income from Equity Investment and Operation” on Dec 30, 2021. It provides further clarification on the tax obligations and management system for sole proprietorships and partnership enterprises holding equity investments.
It has been observed in 2021 that tax authorities are strengthening tax collection and control on a wide scale. Especially in response to those who are taking advantage of corporate organizations combined with special territorial policies in order to avoid taxes. The applicability of preferential policies for sole proprietorships and tax depression is being substantially tightened.
In this edition of Tricor Insights, Tricor Mainland China summarized some of the issues related to the no. 41 announcement that are of high concern and share some recommendations and our expert insights.
Download "Tricor Insights: Impact of Announcement 41 on the Private Equity Industry in Mainland China" below and contact our team of experts for more information: