Does the parent company need to pay value-added tax for investing in shares with non-monetary assets under the same control?
Need. In international business, the parent company refers to the head office that is headquartered in the home country and effectively controls overseas economic entities through foreign direct investment. Under the same control, the parent company needs to pay value-added tax when investing in shares with non-monetary assets. Enterprises investing in non-monetary assets generally involve value-added tax and surcharges, land value-added tax, enterprise income tax, deed tax and stamp duty.