China Law Blog

Strafford Publications, which usually gets pretty good people for its online law seminars, is putting on one entitled, "China's New Business Income Tax: Shielding Non-China Income From the Expansive Enterprise Income Tax." (h/t to AsiaBizBlog) The seminar will take place on August 7 from 1 pm to 2:40 pm, EST. Stafford describes its seminar as follows:

As of Jan. 1, 2008, China enacted a 25% enterprise income tax, under which China has considerable flexibility to bring a foreign company's worldwide income into its tax base. Associated rules and circulars could negate U.S. companies' assumptions that its income is safe from Chinese tax.

Meanwhile, the IRS has proposed much-awaited revisions to its contract manufacturing regs, which are a leading vehicle for American businesses entering the Chinese marketplace. Tax counsel must prepare to leverage the new exceptions and other key changes.

Listen and participate from your telephone as our panel of experienced tax advisors bottom-lines these and other recent developments affecting tax on doing business in China, helping you prepare to adjust your tax planning and transfer pricing strategies.

The panel includes:

Peng Tao, Of Counsel, DLA Piper, New York. His practice focuses on tax and transfer pricing issues in China. He formerly worked in the People's Republic of China's Bureau of Legislative Affairs for five years and for two other international law firms.

Alan Granwell, Partner, DLA Piper, Washington, D.C. He has been practicing in international taxation, and more specifically tax planning and controversies, for more than 35 years. He formerly was an international tax counsel and director of the Treasury Department's Office of International Tax Affairs.

Melanie Chen, Managing Director for China Region Group, UHY Advisors, New York. She specializes in cross-border transactions in China, Hong Kong and Taiwan and advises U.S. companies on complex tax issues in the region. Previously, she worked for Deloitte Touche Tohmatsu in Shanghai and for a law firm in Beijing.

The panel will give you the benefit of their experience and analysis on these and other top tax priorities:

-- Understanding crucial aspects of the enterprise income tax and the associated rules and circulars, so that your company can protect its income from taxation to the maximum possible.

-- Identifying tax opportunities and pitfalls in the Chinese marketplace offered by the proposed U.S. contract manufacturing regs.

-- Planning tax strategies to deal with anti-avoidance provisions and transfer pricing guidance from China.

I have noticed a fairly steep increase in clients seeking referrals from my firm (we do not handle tax matters) for their international tax matters and I have no doubt it is due in large part to both China and the US getting tightening up their handling of international businesses. This Economic Observer article, "Tax Dilemma for China's Ministry of Finance," supports my experiences. I am not a big fan of either taxes or the study of them, but I suspect this seminar will be very worthwhile.