8 May 2015
SAT Announces 10 Tax Measures to Serve "One Belt, One Road"
China’s State Administration of Taxation (SAT) has recently unveiled 10 measures to improve tax services for investors to serve the "One Belt, One Road" Initiative. The measures aim to protect investors' interests, promote development and achieve a win-win outcome.
On the protection of investors' interests in the negotiation and conclusion of agreements, China will actively and steadily promote the negotiation and conclusion of agreements not yet concluded, further strengthen bilateral consultations on tax disputes by making full use of the bilateral consultation mechanism under bilateral taxation agreements, open special channels for the handling of tax disputes, and provide the best service to cross-border taxpayers in the avoidance of double taxation or revenue loss.
On the improvement of services to promote development, China will publish tax guides for each country along the Belt and Road to explain the tax policies of these countries and remind investors of the tax risks. It will conduct special training and question-and-answer sessions on taxation agreements by stages and in groups for Chinese enterprises "going out" to help them make the best of these agreements to protect their own interests and steer clear of tax risks. It will set up a tax service hotline “12366”. It will guide certified accounting firms, tax agencies and other intermediaries in "going out" to provide advice on tax issues in major investment destinations. It will also organise special talks on taxation agreements and foreign investment tax policies in countries along the Belt and Road with a high concentration of Chinese investment for enterprises "going out".
On the strengthening of cooperation to achieve a win-win outcome, China will establish a tax liaison mechanism for countries along the Belt and Road, make use of the intelligence sharing mechanism under bilateral taxation agreements and the mechanism for automatic exchange of financial account information under the Convention on Mutual Administrative Assistance in Tax Matters and share tax information with other countries along the Belt and Road to increase tax transparency and create a fair tax environment for enterprises. It will also promote bilateral tax cooperation and provide developing and low-income countries along the Belt and Road with assistance in training and other matters, with emphasis on helping these countries improve their capabilities in tax collection and administration.