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State Taxation Administration cases

Case detail

Chongqing Yuhuan indirect transfer case (representative)

SAT Public Notice 7 (2015)

Court

State Taxation Administration

Date

2015-02-03

Outcome

for-government

Holding

SAT Public Notice 7 replaced and updated Notice 698 to provide more detailed rules for taxing indirect transfers, including safe harbors and reasonable-commercial-purpose tests.

Facts

Following a series of indirect-transfer cases, the SAT issued Public Notice 7 to provide modernized rules.

Reasoning

The notice expanded scope, clarified safe harbors for genuine reorganizations and public-market transactions, and provided detail on reasonable-commercial-purpose analysis. Public Notice 7 remains the principal Chinese administrative guidance on indirect transfers.

Case metadata

Jurisdiction: China
Topics: indirect transfer, China GAAR, safe harbor
Statutes applied: Enterprise Income Tax Law, SAT Public Notice 7 (2015)

Official opinion

Open official decision

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Primary sources

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