A number of Chinese clients who invest in the Netherlands, by takingstake in the equity of Dutch companies. The potential clients arelooking at us to come with a solution to the problem of the sale of these shares being taxable in the PRC (under the Double-Tax-Treaty between PRC-NL).
Under the DTA NL-Sing, any capital gain made by the sale of shares in a Dutch co by a Sing co are attributed to Singapore. Singapore does
not levy capital gains tax, hence the proceeds of the sale would be free from any Singapore tax. Singapore does not levy any withholding tax on dividends, so the proceeds of the sale of the shares could be paid out directly to the Chinese shareholder.

The question is: If the client would interpose a Singapore company,would he be able to avoid this capital gains tax in the PRC? In other words, we are able to structure the Dutch investments in a tax
efficient manner from a Dutch and Singapore point of view. The only unknown is China and that's were we need your input. Are there any DTA's that China has entered into, that attribute the taxation of capital gains to the other contracting state?

许多在荷兰投资的中国客户,有着和荷兰公司一样的利害关系.一些欲投资的客户正在观望:是否有一套解决双边关于股份交易关税问题的方案.