China’s State Taxation Administration (STA) on July 26 issued the Public Notice on Matters Regarding the Application of Simplified Procedures of Unilateral Advance Pricing Arrangements (STA Public Notice [2021] No.24, hereinafter referred to as “Public Notice 24”). The STA previously sought public consultation on the draft simplified procedures for unilateral APAs (Consultation Draft) on March 19, 2021 (see PwC’s prior Tax Insight ). Public Notice 24 consolidates feedback and opinion of all relevant stakeholders. Compared with the Consultation Draft, Public Notice 24 further relaxes the conditions for the application of simplified procedures for unilateral APAs, effective September 1, 2021.
Takeaway: With the issuance of Public Notice 24, more companies can apply for unilateral APAs under the simplified procedures. The public notice reflects the STA’s commitment toward improving the level of taxation services and promoting the balanced development of tax management and services.
