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    China Signed A Double Taxation Agreement And A Tax Information Exchange Agreement With Malta And Western China.

    2010/11/8 9:37:00 32

    Taxation Economic Investment

    In October 23, 2010, Xiao Jie, director general of the State Administration of Taxation and Malta finance,

    Economics

    and

    Investment

    Minister Tonio Fenech formally signed a new agreement on the avoidance of double taxation and prevention of tax evasion by the government of the Malta and the government of People's Republic of China (hereinafter referred to as the avoidance of double taxation agreement), respectively, on behalf of their respective governments in People's Republic of China.

    The agreement was signed between the two countries in 1993 to avoid double.

    taxation

    On the basis of the agreement, according to the new economic cooperation situation between the two countries, the tax representatives of the two countries were re amended after consultation.

    The new agreement conforms to the development trend of international tax jurisprudence, manifests the changes of the domestic laws of the two contracting parties, and is conducive to further promoting economic exchanges and tax cooperation between the two countries.


    In October 26, 2010, Secretary Xiao Jie and the government of the Ministry of finance of Changan, respectively, on behalf of their respective governments signed the agreement on the exchange of tax information between the government of People's Republic of China and the Isle of man (hereinafter referred to as the tax information exchange agreement).

    In October 27th and 29th, Secretary Xiao Jie also signed a tax information exchange agreement with representatives of the governments of Guernsey and Jersey respectively.

    The above tax information exchange agreement is another three tax information exchange agreement signed by the Chinese government after signing the tax information exchange agreement with the Bahamas government and the British Vilgin government in December 2009. It effectively broadens the legal basis for taxpayers to make use of offshore financial centers for bad tax planning.


    With the further development of economic globalization, some countries and regions have implemented tax competition and brought impact to the international tax order.

    The international community is highly concerned about this and appealed for tax pparency to curb harmful tax competition.

    In order to strengthen international tax cooperation, the State Administration of Taxation will continue to amend the agreement on avoidance of double taxation signed with low tax areas, selectively negotiate tax information exchange agreements with low tax areas and tax shelters, improve the international tax law system, compress the bad tax planning space, safeguard China's tax interests and economic interests, and work together with the international community to build a good international tax order.

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