China's first official position on BEPS released by Jiangsu
China has expressed strong support to the Base Erosion and Profit Shifting (BEPS) initiative as a G20 member in various political declarations. As of today, the State Administration of Taxation (SAT) has not issued a written public statement of its official position at the state level, even though the initial set of new standards and directions were included in the Organisation for Economic Cooperation and Development (OECD) discussion draft papers released in recent months.
On 29 April, the State Tax Bureau of the Jiangsu Province (Jiangsu STB) issued a paper entitled Administrative Plan on international tax compliance for 2014-2015 (the Paper). The Paper summarised Jiangsu STB’s current stance towards the BEPS Action Plan and highlighted the most important tax risks in an international context for multinational enterprises (MNEs), most of which were related to BEPS. The Paper also introduced an action plan for the Jiangsu tax authorities to further tackle BEPS and address specific tax avoidance schemes witnessed in Jiangsu province.
Other issues of China Tax/Business News Flash Visit our Tax Library.