DTA between Chile and China (People’s Rep.) enters into force
The Income Tax Treaty (2015) between Chile and People's Republic of China has been entered into force on 8th August 2016 and it generally applies from 1st January
See MoreChina-Rules on advance pricing agreements updated
The State Administration of Taxation of China issued an announcement updating the rules on advance pricing agreements (APAs) (SAT Gong Gao No. 64) on 11 October 2016. The announcement seeks to improve APA management and implement the tax treaties
See MoreChina: New changes of TP regulations
SAT Bulletin No. 42 published on July 13, 2016 has replaced the existing transfer pricing documentation regulations in Circular Guoshuifa No. 2, known as Circular 2. As per Bulletin 42, two parties will be considered related if they have “other
See MoreChina issued new rules on TP documentation requirement
China issued Bulletin 42 to introduce a requirement for a master file for MNC group resident in China if their annual inter-company transaction amount exceeds RMB 1 billion. The master file requirement is effective from fiscal year 2016. A master
See MoreChina offers tax incentives for software and IC enterprises
On 4 May 2016, the State Administration of Taxation (SAT), the Ministry of Finance (MOF), the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued a notice (Cai Shui 2016 No. 49)
See MoreOECD: Multilateral competent authority agreement signed by China and India
On 12 May 2016 six countries including China and India signed the multilateral competent authority agreement for the exchange of country by country (CbC) reports. The other countries signing the agreement on 12 May were Canada, Iceland, Israel and
See MoreIMF Working Paper looks at reform priorities of Chinese tax administration
On 17 March 2016 the IMF published on its website a Working Paper entitled Tax Administration Reform in China: Achievements, Challenges and Reform Priorities. The paper notes that tax administration improvements have doubled China’s tax to GDP
See MoreChina: Administrative measures to qualify as a high and new tech Enterprise
On 29 January 2016, the Ministry of Science and Technology (MOST), Ministry of Finance (MOF) and State Administration of Taxation (SAT) jointly issued a notice revising the administrative measures with regard to the classification of high and new
See MoreASEAN and China sign FTA protocol
The Association of South East Asian Nations (ASEAN) and China signed a protocol to upgrade their Free Trade Agreement (FTA) on November 22 2015 in Kuala Lumpur, Malaysia. China is already ASEAN's largest trading partner, accounting for 14.5
See MoreChina: super deduction regulation update for qualified R&D expenses
On 2 November 2015, China’s State Administration of Taxation, Ministry of Finance and the Ministry of Science and Technology jointly released Cai shui No.119 to provide expanded scope and follow-up guidance of qualified industries and research
See MoreSecond round of FTA negotiations between China and Pakistan
The 2nd round of the China-Pakistan free trade agreement (FTA) negotiations was held in Beijing on October 14 to 16. The negotiations were based on tax reduction for trade in goods; further opening of trade in services; Pakistan’s regulation
See MoreChina: SAT is Seeking Public Comments on Consultation Draft for Implementing Special Tax Adjustments
On 17 September 2015, China’s State Administration of Taxation released a consultation draft circular concerning implementation measures for special tax adjustments that would replace the existing Guoshuifa No. 2 (Circular 2). Now the SAT is
See MoreASEAN discusses trade with China, Japan and Korea
The economic ministers of the Association of South East Asian Nations (ASEAN) have been meeting their counterparts from China. Japan and South Korea with a view to concluding an economic partnership agreement. China is aiming to conclude an
See MoreChina: Tax incentives for small and low-profit enterprises
On August 19, State Council of China decided to improve the tax breaks available for small and low-profit enterprises. Small and low-profit enterprises can pay their income taxes at the rate of 20% with following conditions: any industrial
See MoreChina: Announcement on Cost Sharing Agreements
Recently, China’s State Administration of Taxation has promulgated the Announcement on Standardizing the Administration of Cost Sharing Agreements (the "Announcement 45") for implementation as of July 16, 2015. This announcement 45 is issued to
See MoreChina ratifies Multilateral Convention for Mutual Assistance in Tax Matters
On 1 July 2015 China’s National People’s Congress approved the signature of the Multilateral Convention for Mutual Assistance in Tax Matters. The agreement was originally signed by China in August 2013. The Multilateral Convention contains
See MoreChile and China sign DTA
The Double Tax Agreement (DTA) between Chile and China was signed on 25th May 2015. The treaty follows OECD guidelines. Article 5 of the treaty defines a permanent establishment and article 10, 11, 12 and 13 allocate taxing rights for dividends,
See MoreChina and Russia: DTA signed
The Double Tax Agreement (DTA) between China and Russia has been signed on 8th May
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