Authored by: Duan Tao(Daisy) , Yang Yingjie and Li Cuishi
(This article was originally published by ALM China Law & Practice on 25 November 2024)
Standfirst: Part I of this series introduced the implications of the amended PRC Company Law for Formal Capital Reductions. Part II will focus on the accounting and tax treatments of Substantive Capital Reductions, and analyze the tax risks of shareholders with regard to capital reductions not made at fair market value.