How long does it take for an APA to be approved in China? What needs to be done?
At present, an APA between the taxpayer and the tax authority takes nine months to a year for approval in China.
A pre-filing meeting with the State Tax Bureau is essential to discuss the following particulars:
(i) Parties involved;
(ii) Duration of the agreement;
(iii) Documents for review by the State Tax Bureau;
(iv) Any double taxation involved;
(v) Sufficiency of documentation to make market price comparisons;
(vi) Principles applicable in determining transfer pricing methods;
(vii) Compliance requirement of the Tax Bureau.
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