China's State Administration of Taxation has issued Notice No. 37 of 2017 and the related interpretation guidance concerning withholding of non-resident enterprise income tax. Key points include:
- Withholding tax on income from the disposal of equity investments (shares) must be determined based on the difference between the actual acquisition cost and the disposal income, with no deduction for undistributed retained earnings;
- Where there are multiple acquisitions/disposals, the taxable amo…