The Ministry of Finance said that the Council of the European Union went to the (107) year to supervise the implementation of the commitments of various countries and jurisdictions. On March 12, 108, the "list of countries with no tax cooperation" was updated. (List of Non-cooperative Jurisdictions for Tax Purposes, hereinafter referred to as the list of non-cooperations), China has implemented the relevant commitments and removed its names from the watch list.
The Ministry of Finance explained that since the beginning of 106, the EU has successively reviewed the three issues of the "tax-transparent tax", "fair tax system" and "implementation of anti-tax base erosion and profit transfer (BEPS) measures" for the third-country tax system. The second communication, the EU recognizes China's efforts in constructing an anti-tax avoidance system and improving information transparency in the past, and invites China to exchange information on the "information exchange with EU member states according to international standards" and "correction or abolition of the free trade port area management regulations. And the implementation of the "BEPS 4 minimum standards" and other commitments to continue efforts. The EU requires that the commitments be consistent with the development trend of international taxation and the direction of China's tax planning. After China's commitment to implement, it has not been listed by the EU Council of Ministers for the first time on December 5, 2006. However, China still has to implement Relevant commitments are still on the watch list.
The EU is updating the list of non-cooperations and continuously tracking the implementation of commitments by relevant countries. China has fulfilled its obligations of international tax cooperation and actively implemented the commitments, which are as follows:
1. Exchange of information with EU member states
according to international standards. Article 5 of Article 5 of the Tax Collection Law and Article 1 of the Article 46 and the Measures for the Implementation of the Joint Declaration and Due Diligence Operation of Financial Institutions and the Measures for the Exchange of Information on the Taxation of Taxation Agreements are issued. Actively negotiate with the partner countries. Procedures (contractual agreement); strengthen China's confidentiality and data protection capabilities; establish information transmission methods in line with international standards.
Second, amend the income tax concessions related to the regulations governing the establishment of free trade port areas
In order to comply with the principle that the European Special Economic Zone's Taxation Privileges constitute a harmful lease tax practice, the principle of differential treatment for domestic and foreign customers may not be applied. The amendments to the Free Trade Port Area Regulations Regulations, Article 29, Item 1, the Legislative Yuan, 107 years. It was adopted on the third reading on December 28 and was implemented on January 18 this year, in line with the European inspection standards.
3. Implementing the 4 minimum standards for BEPS (ie, Plan 5 "effectively combating harmful rent and tax practices", 6 "prevention of tax treaty abuse", 13 "transfer of pricing documents and country reports" and 14 "improving dispute resolution" The efficiency of the mechanism")
China continues to collect and spontaneously provide information on the tax interpretation of the partner countries in accordance with international standards; the revised model of the tax treaty is used to negotiate new agreements or amendments (the website is set up to implement the "Measures for Implementing BEPS Tax Agreements"). Implement the anti-agreement abuse policy; set out the Operational Points of the Mutual Agreement Procedures for Applicable Income Tax Agreements to enhance the ability to resolve cross-border tax disputes; continue to promote agreements with partners based on information exchange with EU member states according to international standards The country's implementation of country reports is automatically exchanged.
Under the supervision of the Executive Yuan, the Ministry of Finance and the Ministry of Foreign Affairs, the Ministry of Communications, the Ministry of Economic Affairs, the Financial Supervisory Commission, and the Inter-Ministerial Office of the European Union and the Belgian Representative Office in Belgium jointly worked hard to explain to the EU the promotion of China's commitments. After the difficulties encountered, the European side finally affirmed the sincerity of our positive response and cooperation, and determined that a commitment has been reached. When the list of non-cooperations was updated a few days ago, China's self-observation list was removed.
In the future, China will continue to work with governments to promote anti-tax avoidance measures and enhance information transparency, safeguard China's international image and reputation, and protect the investment rights and competitiveness of Chinese enterprises in EU member states.
Source: Ministry of Finance