China's State Adminisitration of Taxation on Tuesday clarifies its newly issued rules on withholding tax and previous reports on tax cuts are proven to have misread the new document.
Priorly reports said an up to 50 per cent cut is set for forengn companies to pay as little as 5% withholding tax on dividends sent home from China, half the 10% rate required before.
The relaxing changes were believed to help save companies billions of dollars worth of tax payments, which might initially lead them to repatriate more profits, but ultimately should provide incentives for more investments.
China's tax authority respondes to the report as misreading the content of new rules and states that there is no tax cut. Yet , the new rules clears the identity affirmance of beneficial ower, which might help reducing the tax burden for some countries and regions.