China: Tax administration’s response to BEPS | KPMG | GLOBAL

China: Tax administration’s response to BEPS

China: Tax administration’s response to BEPS

China’s State Administration of Taxation has, in recent weeks, issued guidance that largely clarifies how China plans to apply or “localize” the OECD’s base erosion and profit shifting (BEPS) recommendations. Specifically, a discussion draft on “special tax adjustments” was issued by China’s tax authorities in September 2015, and this draft addresses China’s “localization” of the BEPS actions related to transfer pricing and controlled foreign corporations. With this guidance, it appears increasingly possible to foresee what parts of the BEPS agenda will (or will not) be adopted by China, and if implemented by China, the manner of adoption.


Related content

As the new “post-BEPS” rules take shape, it is also becoming evident as to how multinational enterprises (MNEs) may need to consider revising and adapting their existing investment structures and business models, as well as their tax risk management systems, to cope in the “post-BEPS environment.”


Read an October 2015 report [PDF I MB] prepared by the KPMG member firm in China: OECD 2015 BEPS Deliverables Issued and China’s Response

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal