PRC Individual Income Tax reforms: anti-avoidance tax provisions

摘要

1. anti-avoidance tax provisions have recently been integrated into the PRC Individual Income Tax law and have a significant impact on overseas investments by PRC individual tax residents2. adjustments can now be made by the Mainland's State Administration of Taxation to an individual's taxable income under certain situations, most pertinently those relating to undistributed profits retained by a Controlled Foreign Corporation3. there are significant differences between Hong Kong and Mainland personal tax rates for individual investment, employment and business income.