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Welcome to the third edition of China – Looking Ahead, a series of articles published in association with KPMG.

This year's publication continues the previous years' theme of addressing how China is modernising its tax system, even introducing some ideas first seen overseas, while retaining the right to shape it according to its own needs.

The articles start with a look at what the OECD's work on base erosion and profit shifting will mean for China and continue with studies of, for example, transfer pricing, the move to a single VAT system, exit challenges for private-equity investors and the re-emergence of tax incentives through the establishment of the Qianhai Cooperation Zone and the Shanghai Pilot Free Trade Zone. Including the foreword, there are 14 articles. Watch out, in particular, for the focuses on the real estate, transportation and logistics, healthcare & pharmaceuticals and the auto industries.

The more and more you look at China's tax system, you see a regime that is developing quickly, but also one where, like in other places, investors have to stay razor-sharp to be aware of local differences, particularly in how the rules are enforced. This probably applies nowhere else in the same way as it does in China.

We hope these articles will help you when dealing with your tax affairs in China.

Ralph Cunningham
Managing editor
International Tax Review