From February 5, enterprises can negotiate and reach agreements with
tax authorities over the taxable prices of their goods or services,
according to a newly-released circular by the Finance Ministry on the
implementation of the Advance Pricing Agreement.
The introduction of an Advance Pricing Agreement (APA) is expected to
more transparency in the tax administration process involving
both tax authorities and taxpayers in an agreement and enabling both
parties to control and monitor transfer pricing (TP) issues.
