China Tax Limbo Has Investors Guessing Before Bourse Link
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When is a tax not a tax? When you’re investing in Chinese stocks.
While the nation’s laws suggest foreign equity investors are subject to a 10 percent levy on capital gains, the government has never collected the tax, according to PricewaterhouseCoopers. Confusion over the policy since China’s quota system for foreigners began more than a decade ago has led to a mishmash of compliance, with some setting aside cash for the liability and others anticipating it won’t be implemented, according to HSBC Jintrust Fund Management.