March 22, 2016, Tuesday, Washington DC, China General Chamber of Commerce – U.S.A. (CGCC) hosted the “Discussion on Tax Issues of Chinese Investment in the United States” at the Economic and Commercial Counsellor’s Office of Chinese Embassy in the U.S.
Featuring a delegation led by Wang Jun, the Administrator of the State Administration of Taxation (SAT) of China, this discussion was attended by more than 30 representatives. Attendees include Zhu Hong, Minister for Commercial Affairs at the Chinese Embassy in the U.S., and executives from eight CGCC member companies including Bank of China USA, China Construction America, China Telecom Americas, Sinopec America, Alibaba, Fosun International, Fuyao Glass America, and Jiusan Group.
An introductory presentation was given by Wang Xiaoyue, Deputy Director General of International Taxation Department of SAT of China. She navigated the recent efforts and policy updates that SAT had put place to better facilitate Chinese overseas investment, including the new tax policy implementation relating to the One-Belt-One-Road Initiative and China’s participation at the reforms of international tax rules endorsed by G20 and executed by OECD.
Then, executives from CGCC member companies had interactive dialogues discussing their experiences, challenges, and recommendations in complying with the U.S. tax system.
Vice President of Bank of China New York Branch Mr. Fang Wenjian said, “The U.S. tax system is complicated, and the taxes are heavy, yet comparatively fair and standardized. To better tackle the challenges encountered in tax compliance, we encourage companies to keep a well record on all supporting documents and data on a daily basis.”
President of Sinopec America Zhang Jixing commented, “We hope China’s State Administration of Taxation can push forward the negotiation on additional tax treaties at the state level, as to bring tax benefits for companies. It will show that the U.S. welcomes Chinese investments, as well as China encourages investing in the U.S.”
At the end of the discussion, Mr. Wang Jun concluded, “The United States has one of the most advanced tax systems in the world. Whereas both governments are working together on developing more favorable bilateral tax treaties to bring more benefits to our companies, we always strongly recommend all Chinese companies in the U.S. strictly comply with its tax rules, in order to mitigate potential risks in the long term.”
