China’s State Administration of Taxation (SAT) recently emphasized that the general principles underlying its anti-tax avoidance initiatives are seeking improvement while ensuring stability, with the priority being cross-border profit-level monitoring. A pilot system for profit-level monitoring, rolled out in Jiangsu Province, is anticipated to be gradually expanded to other provinces or municipalities. Multinational groups operating in China should strengthen their transfer pricing risk prevention and early warning systems, to actively manage tax compliance and mitigate risks.
Read more in the attached PwC tax insights newsalert.
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