China's State Administration of Taxation recently issued a public notice stating that Japanese local corporation tax paid by Chinese resident companies is creditable against Chinese Enterprise Income Tax under the 1983 income tax treaty between the two countries.
The law introducing the local corporation tax was enacted in March 2014, and the tax is effective for tax years beginning on or after 1 October 2014. The tax is equal to 4.4% of the national corporation tax. In general, the local co…