May 2022 - Latest development of APA in China Part II - 2020 APA Annual Report and MAP Review Report

The State Administration of Taxation (“STA”) has made continuous effort in promoting Advanced Pricing Arrangement (“APA”). On 29 October 2021, it published the China APA Annual Report (2020) (“2020 Annual Report”). The report shows that the STA has made continuous efforts to enhance its capability to promote APA cases, and signed record-high unilateral APAs and bilateral APAs. In addition, the Organization for Economic Co-operation and Development (“OECD”) released the Stage 2 peer review report of China relating to the outcome of the peer monitoring of the implementation of the Base Erosion and Profits Shifting (“BEPS”) minimum standard under Action 14 on improving resolution mechanisms (known as “MAP Review Report”).