|
In this issue, we look at the following topics. To read the full document, please download the pdf file below.
Update on China's Forthcoming Contemporaneous Transfer Pricing Documentation Requirements
The State Administration of Taxation is drafting a set of administrative measures for transfer pricing documentation, which will likely be issued sometime this year. It is expected to address a number of important aspects concerning transfer pricing compliance and enforcements. It will also provide clarification and detailed guidelines on transfer pricing methodologies that taxpayers should apply in order to evaluate or substantiate the arm's length nature of their intercompany transactions.
Establishing a Global Repair Centre in China: the Customs Issues
Just as China has become the "factory of the world", it is now also becoming a preferred location for worldwide repair operations. This article examines - from a customs perspective - the current issues associated with establishing a global repair centre in China.
New Financial Subsidy Policies in Pudong New Area
Since 1995, Pudong New Area has implemented three sets of "Five-year financial subsidy policy", targeting at newly established tax-paying enterprises which contribute to the financial resources of Pudong. In this connection, the Pudong New Area government has recently released the "Financial Subsidy Policy for Developing Modern Service Industry" and "Financial Subsidy Policy for Developing High/New Technology Industry" together with the implementation rules, for the "11th Five-year period" (i.e. year 2006 to 2010).
The Latest Reporting Requirement on Individual Income Tax
From a few recent circulars, you may have found that the State Administration of Taxation have intensified and regulated the reporting requirements on individual income tax. These include Circular [2005] 120 - Individual Income Tax Administration Measures issued on 6 July 2005, Circular [2005] 205 - Individual Income Tax Withholding Administrative Measures issued on 23 December 2005 and Circular [2006] 58 - Strengthening Foreigners' Individual Income Tax Archives issued on 23 January 2006.
Read more by downloading the pdf file below. |
