PRC Tax International and M&A Tax Services: New Protocol to the China-Barbados Income Tax Treaty

A new protocol amending the existing almost 10-year old income tax treaty entered into between China and Barbados was signed on 10 February 2010. The Protocol aims to reflect changes introduced in China's domestic tax laws following the implementation of the new Enterprise Income Tax ("EIT") Law which became effective on 1 January 2008 while improving the treaty-based mechanism for tax information exchange. The Protocol also amends the particularly favorable Capital Gains article in the treaty. The revision results in that (revised) article being similar to the China-Singapore tax treaty, and the Mainland China-Hong Kong Tax Arrangement.

Deloitte China Tax Analysis - March 1, 2010 ( English, Chinese)