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Application for Initiation of Tax Treaty Mutual Agreement Procedure by Chinese Residents (Nationals)

A Chinese resident (national) may apply for initiation of a tax treaty mutual agreement procedure ("MAP") if it holds that the measures taken by the other contracting state has been or will be contrary to the levying activities (excluding special tax adjustment matters) specified in the relevant tax treaty.

2022-05-13

Advance Pricing Arrangements

An advance pricing arrangement ("APA") refers to an agreement reached by an enterprise and tax authorities, based on the application by the enterprise and upon consultation and confirmation in line with the arm's length principle, on the transfer pricing principles and methodologies to be applied to such enterprise's related party transactions in future years.

2022-05-13

Reporting of Contemporaneous Documentation

Enterprises above certain thresholds shall prepare and submit contemporaneous documentation concerning related party transactions - master file, local file, or special issue file –on a tax-year basis pursuant to requirements of tax authorities.

2022-05-13

Mutual Agreement Procedure for Special Tax Adjustments

In accordance with relevant provisions of applicable tax treaty between China and another state, the State Administration of Taxation ("SAT") may request initiation of a mutual agreement procedure ("MAP") based on the application by an enterprise or the request from the competent tax authority of the other contracting state

2022-05-13

Ascertainment of Resident Status of Overseas-registered Chinese-capital Controlled Enterprises

If an overseas-registered Chinese-capital controlled enterprise ("OCCE") fits the descriptions of being a resident enterprise, it shall file an application for ascertainment of resident status to the tax authority at the place where its main investor in China is registered.

2022-05-13

Tax Record Filing for Outbound Payments for Trade in Services and Other Items

For a single outbound payment exceeding an amount equivalent to US$ 50,000 by a domestic entity or individual with certain thresholds met, tax record filing shall be conducted with the competent tax authority at the place of such entity or individual.

2022-05-13

Examination and Approval of Election of Main Establishments or Places to Consolidate and Pay Enterprise Income Taxes by Non-resident Enterprises (Administrative Permission)

If a non-resident enterprise has two or more establishments or places in China, it may apply to the tax authorities to elect to have enterprise income taxes consolidated and paid by its main establishment or place.

2022-05-13

Reporting of Indirect Asset Transfers by Non-resident Enterprises

When there is indirect transfer of Chinese taxable assets, the seller, the buyer or the underlying Chinese resident enterprise may report such transfer to the tax authority in charge.

2022-05-13

Filing of Election of Special Tax Treatment on Equity Transfers by Non-resident Enterprises

Where special tax treatment is elected for equity transfer by a non-resident enterprise, filing shall be conducted within 30 days after the equity transfer contract or agreement takes effect and the industrial and commercial registration of change is completed.

2022-05-13

Filing of Non-resident Contracting Projects

Domestic enterprises or individuals that outsource construction projects to or receive services from non-residents shall file relevant contracts or report relevant service projects to the competent tax authorities within 30 days of signature of relevant contracts.

2022-05-13

Reporting of Cost Contribution Arrangements

Contributions involved in the joint development or transfer of intangibles, or the joint provision or obtaining of services, should be allocated among associated enterprises in accordance with the arm's length principle when taxable incomes are being calculated.

2022-05-13

Tax

The chart shows the tax standard in Shenzhen

2022-05-13