China’s SAT outlines policy on tax-free mergers and reorgs

China’s State Administration of Taxation (SAT) on July 22 released an English-language translation of a June 3 announcement describing new policies that permit tax-free share and asset transfers in mergers and reorganizations.

According to the announcement, deferred taxation is available for share or asset transfers from parent company to subsidiary, subsidiary to parent company, or subsidiary to another subsidiary.

See:

• SAT Specifies Tax Preference for Four Corporate Assets/Share Transfers