Mar. 1 – The profitability of multinational corporations (MNCs) will be the main focus of Chinese tax authorities during the annual inspection of related-party transactions in 2012, according to a recent report by Shanghai Securities News.
China’s State Administration of Taxation (SAT) aims to establish a comprehensive enterprise index system this year, which will contain nationwide information on both related-party transactions and contemporaneous documentation. Based on the system, the SAT will conduct comparative analyses on related-party transactions conducted in different industrial sectors, tax years, and geographical areas. Continue reading