By Edmund Wan , Teng Haidi, James McKenzie, Yu Qing and Jack Nelson. King & Wood Mallesons

wan_eteng_haidiIntroduction

The foundational instrument for the enforcement of international arbitral awards, the New York Convention (the “Convention”),[1] has made arbitral awards readily enforceable across the world but, in application, the Convention remains reliant upon the divide

By King & Wood’s Trademark Practice

Foreign companies often have concerns regarding whether the litigation process in an overseas venue will be efficiently handled by the relevant courts. In China, given the large increase in IP-related lawsuits in recent years, this is a reasonable concern. In 2009, P.R.C. courts had concluded 6,262 cases with a yearly increase of 31.89%. 1With such an upsurge in litigation, the P.R.C. courts have faced a very significant challenge.

Continue Reading P.R.C. Courts Show Improved Efficiency in Handling Foreign-related IP Lawsuits

By Stephen Nelson, Partner and Head of King & Wood’s Taxation Practice

It is not uncommon for foreign investors to sell the shares of intermediate holding companies that hold the equity in Chinese companies as a way to exit their investments in China, in order to get around government approval procedures, as well as to avoid PRC tax on their capital gains. It certainly appears that these offshore transfers may be examined by the China tax authorities going forward, and may no longer escape the Chinese tax net. Recently, the State Administration of Taxation (the “SAT”) issued the circular Guoshuihan [2009] No. 698, “Strengthening the Tax Administration of Equity Transfers by Non-resident Enterprises” ("Circular 698”), which, for the first time, explicitly requires disclosure to the tax authorities of offshore indirect transfers of equity in PRC companies. The tax authorities may then examine the transferred offshore holding company in order to ascertain whether the structure has a reasonable commercial purpose – if not, the offshore gain could be held subject to Chinese tax.

Continue Reading Offshore Equity Transfers – Next Target for PRC Tax Anti-avoidance Attack