May 2008

NEW CHINESE RULES ON allocation of INCOME TAX

for FOREIGN ENTERPRISES WITH
CROSS-DISTRICT BRANCHES

China’s State Administration of Taxation (SAT) recently issued the Provisional Rules of Income Tax Collection and Administration on Consolidated Filing for Enterprise with Cross-District Operations
(Guo Shui Fa [2008] No. 28) (Notice 28), significantly changing tax
filing rules applicable to foreign investment enterprises (FIEs).

Notice 28 was released on March 10, going into effect retroactive to January 1, 2008. Intended to address the allocation of tax revenues among central and local governments, it provides enterprises with operational tax filing guidance.

For our readers, we have prepared a summary of the major points of Notice 28 and the potential impact it may have on FIEs.

Please read it here.


WE WELCOME A NEW ARRIVAL

Ben Ramos Olivas has joined DLA Piper as a partner based in our Silicon Valley office. He comes to DLA Piper from PricewaterhouseCoopers, where he has practiced in the international tax area since 1993.

Mr. Olivas is extensively experienced in planning and implementing tax structures on a global level on behalf of large international companies. His clients have included a major Internet auction company, financial services companies, major providers of Internet infrastructure equipment and services, a mobile games publisher, and communications companies. Mr. Olivas is admitted to practice in California and the Republic of the Philippines.

His contact information:

Ben Ramos Olivas
ben.olivas@dlapiper.com
(650) 833-2080


DLA PIPER IN THE NEWS

Space Still Available for International Tax Update Conference This Week

DLA Piper is offering “International Tax Update: Contract Manufacturing & Chinese Tax and Transfer Pricing,” a conference on the latest developments in these areas of law, this week in its New York offices.

The event takes place Thursday, May 15.

The conference, chaired by Alan W. Granwell, and jointly sponsored by BNA Tax & Accounting and Boston University School of Law, will discuss contract manufacturing, focusing on new and important guidance issued by the US Treasury Department and IRS, and the latest developments in Chinese tax and transfer pricing (discussed in Daniel Chan and Peng Tao’s article above).

The conference fee is $250. At this writing, a limited number of slots are still available.

The conference is designed for the intermediate to advanced level practitioner. CLE and CPE accreditation will be sought and determined in those jurisdictions requested by registrants.

You may register on line here or by phone at 800-952-2477.

Recent Events

“Critical Tax Issues”

Early this month, Brian Andreoli co-chaired and spoke and
Alan Granwell spoke at “Critical Tax Issues Facing the Pharmaceutical, Biotech & Medical Devices Industries, a conference held in Philadelphia.

Mr. Andreoli spoke on “Migrating Intangibles,” “Pharma Market Intangibles and New Research on Profit Splitting” and “Coping with Section 197 and Milestone Payments.” He also moderated a panel, “Current Audit Experiences – Transfer Pricing Research and Development Tax Credits.” Mr. Granwell discussed “Contract Manufacturing Opportunities and Pitfalls: IRS Guidance on Contract Manufacturing.”

“Successfully Resolving a Tax Controversy”

Eight DLA Piper lawyers participated in a conference, “Successfully Resolving a Tax Controversy – Current Issues,” presented by the
Los Angeles Chapter of the Tax Executives Institute in mid-April.

Michael Lebovitz presented the welcome/introduction and moderated a discussion on “International Tax Issues – Transfer Pricing, Advance Pricing Agreements, Competent Authority,” with panelists Brian Andreoli and Bernhard von Thaden. Ellis Reemer moderated “State and Local Tax Controversies – State Ruling Requests, Settlements, Voluntary Disclosure Agreements, Cooperation Among Taxing Authorities, Settlements,“ with panelists Hugh Goodwin, Cory Stigile, and Mr. Andreoli.

Mr. Reemer also moderated two other panels, “IRS Audits and Appeals: Dealing with the Audit Team, Information Document Requests and Summonses, Privileges, Fin 48, Dual Track Investigations, Resolution Without Litigation,” with panelists Diana Erbsen, Frank Jackson and Mr. Stigile, and “Litigating a Federal Tax Controversy,” with Ms. Erbsen and Mr. Jackson as panelists.