Tag Archives: Sffshore

NEW RULES FOR OFFSHORE TRANSFERS – 698 REPEALED
Dec. 2014 to Feb. 2015 China Bulletin

Stricter Provisions, More Detailed Guidance, Broader Scope:

Five years ago, Notice 698 came into effect.  It reached certain sales outside China by non-Chinese companies (e.g., Delaware) of interests in other non-Chinese companies (e.g., Cayman Islands or Hong Kong) that hold property in a subsidiary in China.  And it subjected capital gains realized from such sales (which would not otherwise be subject to Chinese income tax ) to tax as if the sale were a direct transfer of Chinese assets. Continue reading