Overseas lenders petition for tax delay

SHANGHAI: A group of overseas banks have asked the government to delay a newly imposed interest tax on overseas borrowings, although the tax's levy is in line with international practice, media reports said.

In a petition letter, 36 overseas lenders said the withholding tax on interest payments on all loans to mainland banks from overseas creates an excessive burden. The petitioners included HSBC, Citibank, Standard Chartered and Bank of East Asia.

In the petition signed on Dec 23, banks asked that they only be required to pay the withholding tax incurred after Dec 4 with the back payments put on hold. The tax is retroactive to Jan 1 this year.