China: Improved Access to Tax Treaty Benefits

In 28 August 2015, the Chinese State Administration of Taxation issued an Announcement for Granting Tax Treaty benefits to non-residents.

The Announcement proposes a new system for granting tax treaty benefits where there pre-approval of the tax authorities is no longer required for withholding tax agents to apply reduced tax treaty withholding tax rates for dividends, interest, royalties, capital gains or for taxpayers seeking to secure other tax treaty protections (e.g. permanent establishment protection).

The above Announcement will take effect as from 1 November 2015.