China Notice on Cost Sharing Agreements

China's State Administration of Taxation (SAT) recently released SAT Announcement [2015] No. 45 (Announcement 45) to provide implementation details for Guofa [2015] No. 27 (Circular 27) and guidance to tax administrations and taxpayers on cost sharing agreements (CSA). Circular 27 addresses the...

Full description

Saved in:
Bibliographic Details
Published in:Journal of International Taxation 2015-10, Vol.26 (10), p.7
Main Authors: Fei, Min, Finnerty, Chris, Parsch, Kazuyo, Yap, Bee-Khun, Scott, Trang, Chan, Henry, Choy, Andrew
Format: Article
Language:English
Subjects:
Alliances
Cost sharing
Notices
Related parties
State court decisions
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:China's State Administration of Taxation (SAT) recently released SAT Announcement [2015] No. 45 (Announcement 45) to provide implementation details for Guofa [2015] No. 27 (Circular 27) and guidance to tax administrations and taxpayers on cost sharing agreements (CSA). Circular 27 addresses the repeal of certain nonadministrative approval requirements. Announcement 45 says that the SAT's review and assessment are no longer required when a taxpayer enters into a CSA with related parties. However, the taxpayer must provide a copy of the CSA to its tax bureau within 30 days after signing (or modifying) a CSA with its related parties and disclose it on the related-party transaction forms as part of its annual corporate income tax return.
ISSN:1049-6378