China may make it easier for foreign investors to pay a lower withholding tax on dividends they repatriate, KPMG LLP said.
Under the new rules, any foreign investor publicly traded in a country that has a tax treaty with China, such as Hong Kong or the U.K., automatically qualifies for a 5 percent rate, rather than 10 percent, and no longer has to go through an assessment process, Abe Zhao, a Beijing-based international tax partner at KPMG, said in a phone interview today.
While the rules have yet to be released by the State Administration of Taxation, they have been posted on some local government websites, he said.
Savings from the rule could reach “hundreds of millions of dollars,” Zhao said.
To contact the reporter on this story: Sharon Chen in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Paul Panckhurst at email@example.com