Cross-border Royalties: How to Structure Tax Clauses Effectively
June 30, 2025
A new legal briefing from Shaohe Law Firm explains how cross-border royalty contracts can expose companies to unexpected tax burdens if clauses aren’t carefully structured. With PRC tax authorities requiring VAT and withholding tax on royalties paid to overseas licensors, companies must negotiate who bears which tax. Otherwise they risk financial inefficiencies and compliance issues.
Download the full legal briefing by Shaohe Law Firm to learn how to draft tax clauses that align with Chinese regulations while protecting your business interests.