International partnership on the rise
In recent years, China has been participating globally on the formulation of international taxation rules and building new partnerships. China has been participating more in global economic governance and has made tremendous efforts to improve its ability in the collection and management of taxes with other developing countries and low-income countries.
The State Administration of Taxation is actively participating in an amendment to the UN Practical Manual on Transfer Pricing for Developing Countries and put forward such innovative proposals as cost savings and market premiums that safeguard the interests of China and other developing countries.
As a member of the G20 and the host nation of the 2016 G20 Summit, China has been actively participating in global taxation reform backed by G20 countries.
The SAT has established a leading group that deals with issues related to reform and establishment of mid- and long-term plans.
China signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.
The SAT has established cooperation with 25 international and regional taxation organizations, including the United Nations, the OECD and the International Monetary Fund.
It has also established a bilateral mechanism for taxation cooperation with 115 countries and regions and set up a meeting mechanism for taxation authorities from the BRICS countries of Brazil, Russia, India, China and South Africa to enable the exchange of views and to cooperate in dealing with major international taxation issues of common concern and taxation-related issues for multinational enterprises.
The administration has also signed bilateral cooperation agreements or memorandums for cooperation with the taxation authorities in South Korea, Japan, the Netherlands, France and Mongolia, and increased bilateral high-level meetings and dialogues between taxation officials.
As a developing country, China has similar experiences in its development history with many other developing nations. It also has common interests with its counterparts in safeguarding national independence, maintaining world peace and promoting economic development.
As the largest developing country in the world and a responsible major country, China is committed to helping other developing countries and low-income countries improve their ability in tax collection and management. Together with other countries, China will further promote the innovative development of international cooperation in taxation.
The author is assistant inspector, International Taxation Department, the State Administration of Taxation.
(China Daily 05/11/2016 page6)
