China US Tax Treaty Explained
Nobody should dabble in international tax. It is hugely complicated, and should be handled only by attorneys and accountants who specialize in it. Incredibly few do. Gary Tober here in Seattle is one who does and he has a great reputation. All of this is a preface for the fact that a reader just emailed me a copy of an article on the US-China tax treaty and asked me if "this guy Tober knows what he is talking about." I wrote back, saying "yes" and I am now linking over to this article, entitled, "US Taxation of a Foreign Person's US Activities and Income Tax Treaty Between the People's Republic of China and the United States"
Go ahead and read this, but do NOT act without first hunting down and consulting with a legitimate international tax lawyer or international tax accountant familiar with the tax laws of your home country and China and the interaction between those laws.
Comments
Dan I think you actually mean a tax specialist familiar with US GAAP and China GAAP, with additional experience in how US IFRS and SOX regulations impact on China subsidiaries, not an "international tax lawyer" or "international tax accountant". The latter usually specialise in offshore trust work and would have no idea of China. Most of the large US tax firms have US/China GAAP people in position inhouse now, as well as the bigger ones in China handling American MNC's.
Posted by: Paul White | April 14, 2008 7:11 PM
Paul White,
Yes, that is what I meant. In fact, I added a bit to the post in an effort to clarify. You are also right that most of the mega law and accounting firms have such people.
Posted by: China Law Blog | April 14, 2008 8:28 PM
Is there any treaty between the US and China stating: There is no income tax for the first 3 years for corporations invested by China in the USA.
Posted by: ella lin | June 29, 2009 3:50 PM