08.08.10 20:31 Age: 8 yrs
New China-Barbados Double Taxation Protocol Is to Be Implemented
On June 28th 2010, the State Administration of Taxation (“SAT”) issued the Notice of Effectiveness and Implementation of the China-Barbados Protocol on Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes (Guo Shui Fa  No.64) (“the new Protocol”). According to the Notice, the new Protocol signed on February 10th 2010 came into effect on September 6th 2010 and is to be implemented on January 1st 2011.
The new Protocol is an amendment to the China-Barbados Protocol on Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes signed on May 15th 2000. The amendment is grossly technical rather than substantial. But it should be noted that if the taxes of dividend are levied by the Party of the company and the beneficiary is from the other Party, the limit of the taxes is now 10% (with the exception that the beneficiary is a corporation and holds over 25% share of the former), which was 5% prior to the new Protocol.
Zhang Fan, attorney of Lehman, Lee & Xu, remarked, “There’s nothing surprising in the new Protocol. But corporations concerning foreign trades with Barbados should pay attention to the details of the new Protocol.”
Lehman, Lee & Xu is a prominent Chinese corporate law firm and trademark and patent agency with offices in Beijing, Shanghai, Shenzhen, Hong Kong, Macau, and Mongolia. The firm has also been recognized as one of the top full service as well as intellectual property firms in China by several international magazines. The law firm is managed by Mr. Edward Lehman, a leading expert on corporate law with 20 years of practice experience in Mainland China.
To learn more about us, please visit our website at www.lehmanlaw.com.