China exempts locally incorporated foreign banks from certain taxes – Xinhua

BEIJING (XFN-ASIA) – The Ministry of Finance and State Administration of Taxation have jointly issued a circular on taxation exempting locally-incorporated foreign banks from certain taxes, the official Xinhua news agency reported.Xinhua said the circular covers business tax, value-added tax, corporate income tax, stamp tax, and real estate transaction tax.The circular relates to the Regulations on Foreign-funded Banks issued in November 2006, which allow the incorporation in China of foreign banks and the transformation of their branches as wholly-owned foreign banks on the mainland.In the process of transformation, the circular says, the transfer of property rights and equities from a former bank branch to the transformed wholly-owned foreign bank is exempted from business and value-added taxes, according to Xinhua.A transformed wholly-owned foreign bank should continue to enjoy tax holidays which the former bank branch had enjoyed. If the tax holidays expire before the branch’s full transformation, the new wholly-owned foreign bank will cease to enjoy such benefits, according to the circular.

  • bitcoinBitcoin (BTC) $ 87,298.00 2.89%
  • ethereumEthereum (ETH) $ 3,086.92 3.21%
  • tetherTether (USDT) $ 0.994741 0.74%
  • solanaSolana (SOL) $ 211.47 1.43%
  • bnbBNB (BNB) $ 630.38 2.26%
  • xrpXRP (XRP) $ 0.824139 19.44%
  • usd-coinUSDC (USDC) $ 0.996340 0.54%
  • staked-etherLido Staked Ether (STETH) $ 3,076.54 3.5%
  • cardanoCardano (ADA) $ 0.585048 1%
  • tronTRON (TRX) $ 0.177945 0.57%
  • the-open-networkToncoin (TON) $ 5.33 1.39%
  • avalanche-2Avalanche (AVAX) $ 31.63 4.15%