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.

Outbound Chinese investment is now taking place against the backdrop of an increasingly robust and supportive TP framework. Xiaoyue Wang, and Choon Beng Teoh examine issues such as the MAP and APA programmes.

In 2018, Hong Kong SAR enacted TP legislation, a significant step in aligning its tax rules with international standards. Karmen Yeung, Irene Lee and Tanya Trantallis set out the key features of the rules.

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.

The past year has seen a further evolution in China’s tax treaties, in particular in integrating impactful BEPS permanent establishment (PE) changes. The maturity of work on global tax reforms hints at more profound changes ahead, write Chris Xing and Conrad Turley.

In the context of a changing global trade and investment environment, and China’s economic slowdown, tax enforcement approaches are evolving and maturing. Chris Xing and Conrad Turley trace the latest trends.