China’s Progress Towards Tax Certainty: Trial Implementation of Advance Tax Rulings in Various Regions

• China is moving towards tax certainty with trial implementation of advance tax rulings
• Various regions in China are exploring the implementation of advance tax rulings
• Shanghai Taxation Bureau issued trial administrative measures for tax advance rulings in December 2023
• Guangzhou Nansha and Shanghai have detailed measures for advance rulings, while other regions have briefly outlined implementation rules
• Common features of tax advance ruling regulations include a combination of “white list” and “blacklist”
• Shenzhen has launched a compliance assessment service for special tax adjustments for cross-border matters
• Compliance assessment service and tax advance rulings are both considered tax dispute prevention mechanisms
• Tax advance rulings involve more complex matters and provide greater certainty on uncertain tax treatments or positions.

Source: globaltaxnews.ey.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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