China: Tax Authorities

On September 1, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Individual Income Tax Policies Concerning Dividends and Profit Distributions Received by Foreign Individuals (Announcement [2026] No. 27 of the Ministry of Finance and the State Taxation Administration, hereinafter referred to as “Announcement No. 27”), introducing significant changes to the individual income tax treatment of dividends and profit distributions received by foreign individuals from foreign invested enterprises (“FIEs”). Announcement No. 27 took effect upon issuance.

Agreements to transfer shares in a PRC company are typically subject to PRC stamp duty at a rate of 0.05% of the consideration, which applies to both the purchaser and the seller.

The recent revisions to the Company Law of the People's Republic of China ("PRC"), which were formally approved on 29 December 2023 and will go into effect on 1 July 2024 ("New Company Law")...