China to prevent intl firms from avoiding tax

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Chinese taxation authorities pledged to step up supervision of multinational companies on Monday in a campaign to crack down on tax avoidance.

Zhang Zhiyong, deputy director of the State Administration of Taxation, said China will comprehensively monitor the profit levels of foreign companies to make sure there is no “base erosion and profit shifting” (BEPS).

A company may erode a country’s tax base by using a number of schemes to shift profits across borders, taking advantage of tax rates that are lower than in the country where they earn the profits.

“China will coordinate with other countries to clamp down on BEPS plotting and cross-border tax avoidance,” said Zhang.

China is the world’s largest destination for foreign direct investment and faces the challenge of varied tax avoidance techniques.

Last month in Brisbane, Chinese President Xi Jinping and other G20 leaders promised further efforts to stop tax avoidance, including measures to modernize international tax rules, prevent cross-border tax evasion, and exchange information among member countries and with other countries.

Zhang said China will actively engage in global cooperation to fight BEPS activities and other tax avoidance schemes.

 

 

Source : China Daily | December 2, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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