ON the contentious issue of 'Beneficial Ownership' the China
State Administration of Taxation has come out with a Circular (No 601) to
provide guidance on how to determine - who is the BO of certain China-sourced
passive income under the relevant tax treaty.
A
public notice (No 30) issued in this regard lists out certain factors and
clarifies that no negative or positive inference is to be made based on merely
one adverse factor. It also notes that a qualified listed company will
automatically be regarded as a BO for any dividends received from its Chinese
subsidiaries.
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