Page 9 - THE SOUTH CHINA BUSINESS JOURNAL
P. 9
May 2017
and administration system of tax bureaus on both local and state Impact Assessment for Investors
levels. As a holistic program in itself, the BEPS action plan poses a sig-
nificant change not only for international tax law, but also for
And in 2014, President Xi Jinping pledged support for the inclu- how individual jurisdictions interact and operate. This applies
sive framework and global tax reform. Since, China has hosted to both Hong Kong and China, two regions proactively dedicated
the G20 and the OECD Forum on Tax Administration. The State to implementing the OECDs BEPS package. Thus, it is of key
Administration of Taxation (SAT) has been instrumental in im- importance for multinational enterprises and investors to take
plementing BEPS related regulation, translating and publishing heed of the changes, keep on top of updates to regulation, and,
all BEPS reports in Chinese, participating in the formulation of in particular, adjust internal operation to reflect the changes in
the BEPS project, and forming a domestic BEPS task force. Tax the international and domestic tax environments. A good way
laws and treaties have been revised by SAT in order for the BEPS to start this process is to conduct a BEPS impact assessment,
package to have optimum effect in China, including regulation so that operation is sufficiently calibrated with the changing tax
pertaining to transfer pricing, anti-avoidance rules, and financial compliance requirements. Preparations should also be made for
and tax EOI. Thus China’s regulatory environment and tax au- wider BEPS plans outside of China and Hong Kong in order to
thorities’ behaviours are changing accordingly. fully comply in the international tax environment.
This article was first published by China Briefing.
and administration system of tax bureaus on both local and state Impact Assessment for Investors
levels. As a holistic program in itself, the BEPS action plan poses a sig-
nificant change not only for international tax law, but also for
And in 2014, President Xi Jinping pledged support for the inclu- how individual jurisdictions interact and operate. This applies
sive framework and global tax reform. Since, China has hosted to both Hong Kong and China, two regions proactively dedicated
the G20 and the OECD Forum on Tax Administration. The State to implementing the OECDs BEPS package. Thus, it is of key
Administration of Taxation (SAT) has been instrumental in im- importance for multinational enterprises and investors to take
plementing BEPS related regulation, translating and publishing heed of the changes, keep on top of updates to regulation, and,
all BEPS reports in Chinese, participating in the formulation of in particular, adjust internal operation to reflect the changes in
the BEPS project, and forming a domestic BEPS task force. Tax the international and domestic tax environments. A good way
laws and treaties have been revised by SAT in order for the BEPS to start this process is to conduct a BEPS impact assessment,
package to have optimum effect in China, including regulation so that operation is sufficiently calibrated with the changing tax
pertaining to transfer pricing, anti-avoidance rules, and financial compliance requirements. Preparations should also be made for
and tax EOI. Thus China’s regulatory environment and tax au- wider BEPS plans outside of China and Hong Kong in order to
thorities’ behaviours are changing accordingly. fully comply in the international tax environment.
This article was first published by China Briefing.
