Features

China has seen the continued evolution of its transfer pricing (TP) enforcement towards a data-based administrative approach, and away from aggressive audits. Xiaoyue Wang and Choon Beng Teoh explore the latest trends.

China merged its previously separate state and local tax authority systems in 2018. This has provided a basis for improvements in tax administration and services, and required taxpayers to adapt. Michael Li, Tracey Zhang and Fang Wei explore the changes.

In 2020, taxpayers should be alert for the following China tax developments and trends.

Looking ahead, technological changes will impact VAT administration and compliance, with significant implications for the role of the VAT professional. Lachlan Wolfers sets out a series of predictions for the years ahead.

China has continued to improve access to tax incentives and provide new regulatory support for innovation. At the same time, renewed rigour is being applied to ensure that tax incentives are claimed appropriately. Bin Yang and Nicole Cao detail the landscape.

In 2019, the major individual income tax (IIT) reform initiated in 2018 was reinforced with a string of clarifications. Chinese tax residents and foreigners with exposure to Chinese IIT are coming up to speed with the changes. Michelle Zhou explores the issues.