Clarity on QFII tax issue expected in months

Chinese regulators are tipped to provide clarity within six months on a mooted 10% withholding tax to be applied retrospectively for capital gains made by QFII investors trading A-shares. Speculation over the tax has been circulating since 2008, when a corporate income tax law came into force. In particular, foreign investors are concerned about how far back such a tax would be applied since it would hit performance of funds that had not fully provisioned for such a liability. J…