The Annual Report describes the regulations, procedures, latest statistics, and implementation status of the APA program in China, and provides references for enterprises and competent tax authorities in other countries and regions. These statistics show that China had concluded a total of 147 APAs by the end of 2017, and a number of other APAs (yet to be concluded) were in the application process at that time.
In addition to becoming increasingly active in negotiating APAs, in recent years the Chinese tax authorities also have made significant efforts to enhance their capability in negotiating mutual agreement procedure (MAP) cases for historical disputes. According to the latest statistics released by the OECD in 2017, China has made significant progress in increasing its efficiency in resolving MAP cases and eliminating double taxation for enterprises. In the past two years, Chinese tax authorities have been actively participating in competent authority MAP meetings with tax authorities of other countries/regions. The frequency and number of MAP meetings in 2018 reached an historical high.
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