The pass-through tax treatment for partnership enterprises has finally been officially confirmed by the PRC tax authority, via the Circular on the Issues Concerning the Income Tax of the Partners in Partnership Enterprises, Caishui [2008] No. 159, which took effect retroactively as of January 1, 2008. It represents an important first step in the development of Chinese partnership tax law. 

Stephen Nelson, Partner, and Alice Zhang, TaxationContinue Reading PRC Confirms Pass-through as “Allocate First, Then Tax”