China Further Develops Its Transfer Pricing Regime - Issuance Of Bulletin 6

The China State Administration of Taxation (SAT), on March 17, 2017 has issued new transfer pricing rules: Bulletin 6 – the “Administrative Measures on Special Tax Investigation, Adjustment and Mutual Agreement Procedures”, which has taken effect as of May 1, 2017. Bulletin 6 revised and refined certain provisions stipulated in the 2009 "special tax adjustment implementation measures (Trial)" (Circular 2) and further clarified the transfer pricing investigation procedures and adjustment methods applied by the Chinese tax authorities. Moreover, Bulletin 6 has absorbed the latest achievements of the BEPS actions and the G20 international tax reform, combined with China specific tax/transfer pricing practice, and further improved the transfer pricing adjustment procedure under special tax investigation procedure. Bulletin 6 becomes another topic of great concern between enterprises and tax authorities with respect to transfer pricing matters after the issuance of Bulletin 42 and Bulletin 64.

Bulletin 42 issued by the SAT on 29 June 2016, reflects the Chinese tax authority’s position in responding the international standard set out in the OECD/G20 BEPS Action 13 in relation to TP documentation and country-by-country reporting. Particularly, Bulletin 42 introduced a value chain analysis (“VCA”) which is newly added and requested to be included in the local file documentation as of 1 January 1 2016. According to Bulletin 42, The local file must be completed by 30 June 2017 for related party transactions during the fiscal year 2016 (i.e. 1 January 2016 to 31 December 2016).

Bulletin 64 issued by the SAT on 18 October 2016, mainly focused on refining the administration of advanced pricing arrangements (“APA”). It emphasizes that the TP issues of particular concerns in China include value chain analysis and location specific advantages. Bulletin 64 indicated in various sections that value chain analysis and location specific advantages are required elements of application for APA in China.

For a detailed assessment on how the three bulletins might affect your transfer pricing system, please do not hesitate to contact us.

  Download leaflet      Download leaflet    Bilingual Version of Bulletin 6  (Source: Dentons)


中国国家税务总局(国税局)于2017年3月17日发布新的转让定价规则:6号公告 -“特别纳税调查调整及相互协商程序管理办法”。 6号公告将于2017年5月1日起正式施行。6号公告修订并完善了2009年 “特别纳税调整实施办法(试行)》的通知”(国税发[2009] 2号) 中的若干规定,并进一步明确了中国税务机关实施的转让定价调查程序和适用的调整方法。6号公告采纳了国际BEPS行动和G20国际税收改革的最新成果,结合中国具体的税收/转让定价做法,进一步完善了特别纳税调查程序下的转让定价调整程序。对税企双方来讲,6号公告成为继42号公告和64号公告发布之后就转让定价事项的又一个关注焦点。

国税局于2016年6月29日发布了42号公告,该公告反映了中国税务机关在回应经合组织/ G20的 BEPS 第13项行动计划的倡议,就转让定价文件和国别报告要求的国际标准在中国的落地。 42号公告特别引入了价值链分析并要求包含在的本地文档中(即财政年度起始于2016年1月1日以后的企业)。根据42号公告的要求,本地文档必须在2017630日前完成 (即2016年1月1日至2016年12月31日财年发生的关联交易)。

2016年10月18日国家税务总局发布了64号公告,该公告主要针对预约定价安排(“APA”)的管理。 其强调中国特别关注的转让定价问题包括价值链分析和区位特殊优势。 64号公告在各章节明确指出价值链分析和区位特殊优势是中国APA申请的必备条件。


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