28 June 2016
China’s One Belt One Road Initiative on Tax and Customs
By Spiegeler Attorneys-at-Law
In September and October 2013, the Chinese President Xi Jinping had brought up two strategic initiatives which are jointly known as the “One Belt One Road” Initiative (OBOR), respectively the New Silk Road Economic Road (SREB) and the 21st Century Maritime Silk Road (MSR). These two projects are considered a re-establishment of the historical trade route between China and Europe across the Middle East. This is a trade and investment oriented Initiative aiming at integrity and connectivity in Eurasia.
In respect with tax and taxation, the State Administration of Taxation (SAT) announced a package of ten measures in April 2015 for serving the implementation of the OBOR Initiative. This package is also known as the “policy paper on implementing the OBOR Initiative” through enhancing taxation services and management. Thorough execution and interpretation of taxation agreements are on the top of this agenda. Eliminating mismatches between regional law enforcement and tax disputes are priorities as well.
Taxation information centers assorted by nationalities were firstly promoted in July 2015 on provincial levels for pilot functional testing. Besides, the tax information website for OBOR initiative was introduced to build a comprehensive taxation guidance database covering all the OBOR countries. A hotline for questions on taxation was set up. this is however mainly targeting Chinese enterprises planning to expand overseas via the OBOR platform...
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