China to Relax Tax Filing Obligations for Foreign Exchange Payments

China's State Administration of Taxation and State Administration of Foreign Exchange have jointly issued a draft supplementary announcement for public comment regarding the tax filing obligations in relation to outbound foreign exchange payments. Under current rules, persons making outbound payments such as dividends, interest, royalties, etc. are required to file records with the local tax authority when the payment remitted abroad exceeds USD 50,000.

Under the draft, the filing requireme…