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China Outlines Faster APA Process to Resolve Tax Disputes

Aug. 2, 2021, 1:03 PM

China’s new guidance for resolving tax disputes between multinationals and the government is poised to speed up a process that can take years to settle.

The guidelines, released July 30, are designed to simplify how China’s State Administration of Taxation (STA) issues certain tax rulings—called unilateral advance pricing agreements—for multinational companies looking for tax certainty over how they value their intercompany transactions. The new rules could streamline the process to under one year and help companies avoid audits and costly disputes with Chinese authorities, practitioners say.

Under the guidelines, tax authorities are required to respond to unilateral-APA applications from ...

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