Global PE firms facing China tax clampdown

Offshore private equity groups holding Chinese assets face tougher tax obligations under new rules. In a clarification of six-year-old regulation, the move will make it more difficult for PE firms to use Chinese asset sales as a means to avoid tax, and will impose financial penalties on those deemed to be tax avoiders. But a consultant has warned that the most difficult hurdle will be the stringent reporting obligations. Rules were initially implemented in 2009 by China’s Stat…