A propos de Gide
Fondé à Paris en 1920, Gide est l’un des principaux cabinets d’avocats internationaux.
International
Gide intervient dans de nombreux pays et est implanté dans six régions du monde, avec 11 bureaux.
Fondé à Paris en 1920, Gide est l’un des principaux cabinets d’avocats internationaux.
Gide intervient dans de nombreux pays et est implanté dans six régions du monde, avec 11 bureaux.
The Ministry of Finance ("MOF") and State Administration of Taxation ("SAT") recently released two new circulars, Caishui [2014] No. 109 ("Circular 109") and Caishui [2014] No. 116 ("Circular 116"), to update the enterprise income tax ("EIT") treatment of Chinese companies undergoing restructuring. To encourage more mergers and acquisitions in China, these two circulars substantially improve current EIT restructuring rules by relaxing conditions for deferred taxation for certain transactions.
Under PRC restructuring rules , companies undergoing restructuring (including mergers, splits, and asset and equity transfers) must conduct the related transactions at fair market value and accordingly recognise the resulting profits or losses. However, if a transaction meets certain criteria, the company may apply for a tax deferral. If granted, the company may transfer the assets or equity at book value (instead of fair market value) so that no capital gain is generated. With no gains, no EIT will be due — until the next time the assets or equity is transferred (i.e. deferred taxation). However, the criteria for deferred taxation were very restrictive so that very few companies could actually benefit from this regime.
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