Publisher's Synopsis
The purpose of signing a tax treaty is not for its existence on paper, but for its application in practice. It must be applied and enforced by the competent authority within the domestic legal system; when it is not clear or detailed enough, the domestic law assumes the task of interpretation and implementation - at least in a practical sense. On the other hand, these treaties act as a guideline, a benchmark or a boundary for the scope and discretion of domestic tax law; because the former has a direct effect in China and supersedes the latter if they conflict. From this point of view, the research of foreign-related income tax law cannot be isolated from tax treaties in general and specific treaties in particular, for transactions in relation to parties from such specific countries. The book provides complete and updated information for China's tax treaty law and practice, as well as all domestic laws, regulations, decrees and internal tax policies in relation to the application and implementation of tax treaties in China. It explores the underlying policies, rules and mechanisms for operating China's tax treaties either at the level of treaty law or in the domestic plane of implementation. In conjunction with the textual analysis it provides necessary guidelines or suggestion for tax planning in various business scenarios. The book views tax treaties as the starting point for solving Chinese tax issues. The related tax consequences and potential problems are also addressed.
