China’s State Administration of Taxation issued guidance concerning cost sharing agreements. The guidance—known in English as “the Announcement on Standardizing the Administration of Cost Sharing Agreement” or Announcement 45 —was issued in June 2015 to improve and standardize the administration of cost sharing agreements.
Announcement 45 replaces prior guidance (Circular 2) and includes the following measures:
Read a July 2015 report prepared by the KPMG member firm in China: Standardization of the Administration on Cost Sharing Agreement
Contact a tax professional with KPMG's Global Transfer Pricing Services.