Taxable capital gains may arise on withdrawal or reduction of capital
Taxable capital gains may arise on withdrawal or ...
China alert - Issue 22, July 2011
The State Administration of Taxation (SAT) issued the announcement  No. 34 (Announcement 34) on 9 June 2011 to deal with, among other issues, the Corporate Income Tax (CIT) treatment of the withdrawal or reduction of capital. Basically, the proceeds derived by investors may be divided into (1) return of capital, (2) dividends and (3) capital gains. These components will have different CIT treatments. Announcement 34 takes effect from 1 July 2011.
© 2022 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in Mainland China, KPMG, a Macau (SAR) partnership, and KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.