China signed the Multilateral Convention on Mutual Administrative Assistance on 27 August 2013 in Tax Matters. The Convention provides a framework for cooperation between tax authorities to exchange tax information.
The OECD and the G20 are currently working towards the implementation of automatic exchange of information as a global standard of information exchange. In addition to automatic information exchange the Convention allows spontaneous exchange of information, simultaneous tax examinations of an entity in two of the signatory states and assistance in the collection of taxes. The Convention therefore provides an important tool in fighting tax evasion while protecting the rights of taxpayers to confidentiality with respect to the information exchanged.
