A Tax Policy Analysis on Foreign Investors'Investment in China-Europe Global Depository Receipts
Since the establishment of the depository receipt interconnection mechanism between China and the European capital market in 2018,several domestic A-share listed companies have successfully issued Global Depository Receipts(GDR)on European stock exchanges and gone public for financing.However,some domestic international tax policies on GDR are not clear.Based on the analysis of the current tax policies,this paper proposed several suggestions,including applying look-through principle for overseas investors investing in GDR,clarifying related party conditions for GDR overseas investors,and improving tax preferential policies in China.
Foreign investorsChina-Europe stock connectGlobal depository receiptTax policyTax collection and administration