Study on Legal System of Advance Pricing Arrangement
|Keywords||APA transfer pricing regulations statutory rules|
People’s Republic of China to the 10th National People’s Congress of the fifth meeting of 16 March 2007,adopted the law on enterprise income tax People’s Republic of China (hereinafter referred to as the enterprise income tax law).The new enterprise income tax Act introduces the APA arrangements, that is, article 42 provides"enterprises can submit to tax authorities and their related business pricing principles and method of calculation, tax authorities, in consultation with the enterprise after the confirmation, an advance pricing arrangements".This is the new enterprise income tax Act, the newly added a provision of law. This is to strengthen the tax administration, improve the tax efficiency of great significance. But pricing arrangements is a complex legal system, including a series of complex issues that need to be addressed, and the enterprise income tax act in respect of comparison of APA, in tax practice principles to specific operations.To implement the enterprise income tax Act and its regulations, norms and strengthen the management of the special tax adjustment, State administration of taxation on January 8,2009 enacted the measures for the implementation of the special tax adjustment (for trial implementation) "(the IRS issued 2009 Eclipse 2 s, hereinafter referred to as the "rules").Among them, the "rules" that made the APA specially stipulated. And the earlier associated enterprises business rules for tax administration (for trial implementation) "(the IRS issued] [Gordon 59, 1998) and on the revised page(associated enterprises business tax management procedures> notifications (for trial implementation)" (the IRS issued s 143 s 2004) and the State administration of taxation on business transactions between affiliated enterprises of APA practice rules compared to the definition of the relationship between standards, APA arrangement of conditions and arrangements for the application of the APA, as well as the enterprise reported time period has a larger adjustment. But having said that, the enterprise income tax Act, "rules" Although it made an APA, but many problems still exist. In this light, following this article from the APA’s concept, starting with the nature and effects, in the analysis of China’s implementation of APA’s necessity and feasibility of, on the basis of how perfect our pricing system. This article on APA system from four aspects.The first part of the "book pricing system and its role in the concept, nature." In this section, the first on the concept of APA are analysed, the so-called, refers to the APA in year started and managed transactions occurring prior to the taxpayer for which tax authorities and one or more foreign tax authorities recognized its transfer pricing adjustment method and price standard, with the tax authorities equality consultation, double (more) parties follow a kinds of institutional arrangements;secondly for APA’s nature there are three different doctrine was discussed; the angle from the tax authorities and taxpayers in terms of the institutional role of the APA. The second part of "the implementation of APA the necessity and feasibility of the system."In this section, in combination with the actual situation in China, discusses China’s implementation of the necessity of APA and its feasibility. The third part of the "current system status of the APA and its problems." In this section, the first from our legislation the provisions of the APA and the current status of the pricing system, last from five areas discussed China’s existing pricing system.The fourth part of "perfecting the APA system."In this section, the first proposed APA should clear three principles, the second is to fill the existing gaps in the law, so that explains, finally, to modify, improve, strengthen their APA system operational explains.