Dear ,

Shanghai, April 2009 - Transfer Pricing Associates, the leading independent provider of global transfer pricing services and part of the Transfer Pricing Associates Global group, advises that the Shanghai State Administration of Taxation (Shanghai SAT) has released a local circular confirming that the 2008 Enterprise Income Tax (EIT) returns and Related Party Transaction Disclosure forms are due for submission by taxpayers on 15 May 2009 (i.e. two weeks earlier than the general deadline of 31 May 2009 as specified in Guo Shui Fa [2008] No. 114).

The relevant text in the Shanghai SAT Circular [2009] No. 20 is as follows:

"Taxpayers should file their annual corporate income tax returns to the in-charge tax bureau by 15 May 2009. The amount of additional enterprise income tax to be paid by the enterprise or amounts to be refunded to the enterprise should be settled by 31 May 2009".

Transfer Pricing Associates also understands that some tax officials in Pudong, Tianjin and Nanjing are suggesting that the Related Party Transaction Disclosure forms are due on 30 April (because this was the due date for the EIT return in previous years). As a local SAT circular has not been issued in these cases our view is that taxpayers in these cities should assume that the deadline for lodgement of the 2008 return remains 31 May unless a specific request is made by the authorities for early lodgement. However, specific clarification should be requested.

It is clear that the Chinese tax authorities are placing a high degree of importance on the collection of the Related Party Transaction Disclosure forms and intend to use the information to be provided on these forms for the purposes of identifying high priority transfer pricing audit targets. Taxpayers would therefore be well advised to prepare these forms very carefully, mindful of the risk that inaccurate or unusual disclosures could trigger unwelcome transfer pricing reviews.

In a separate development the SAT held a seminar on 31 March 2009 with a number of larger taxpayers in China to provide some further information on the transfer pricing documentation requirements and the Related Party Transaction Disclosure forms.

If you are interested to read the complete Press Release, please visit our Global News pages.


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Transfer Pricing Associates is the leading independent provider of global transfer pricing services and part of the Transfer Pricing Associates Global group. The Transfer Pricing Associates Global group is an independent and specialist provider of expert transfer pricing, tax valuation and customs services, headquartered in Amsterdam and with our own offices and coverage in over 25 countries around the world. Transfer Pricing Associates provides high quality transfer pricing advice and assistance to multinationals of all sizes, wherever they are located.

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