Application Requirements
Where a Chinese tax resident or a Chinese national considers that the actions of a foreign tax authority of a treaty partner have resulted or will result in taxation which is not in accordance with the double taxation avoidance agreements (DTA) signed between the Chinese government and governments of other countries or the DTA arrangements signed between the Mainland of China and China’s Special Administrative Regions of Hong Kong and Macao (hereinafter collectively referred to as tax treaties), such taxpayer may apply for initiating a mutual agreement procedure (MAP) to the tax authority of China.
If a foreign tax authority refuses to grant a tax treaty to a non-domestic-registered resident enterprise or identifies it as a tax resident of the country (region) in which it is located, the enterprise may apply for initiating a MAP to the tax authority of China.
Legal Basis
1. DTA agreements signed between the Chinese government and governments of other countries; DTA arrangements signed between the Mainland of China and China’s Special Administrative Regions of Hong Kong and Macao.
2. Article 7 of the Public Notice of the State Taxation Administration on Implementation Measures of Mutual Agreement Procedure (MAP) for Tax Treaty Related Issues (issued by STA Public Notice [2013] No. 56 and amended by STA Public Notice [2018] No. 31)
Materials Needed
To apply for initiating a MAP under tax treaties, an applicant shall submit:
If an applicant refuses to accept a competent provincial tax authority’s decision to reject its application, the applicant shall submit:
Notes:
1. Taxpayers are responsible for the authenticity and legality of the materials submitted.
2. The information filled in or provided by the applicant shall be submitted in Chinese, and if the original copy of the relevant material is in foreign language, a Chinese translation shall be provided at the same time. When the applicant submits a printed copy of the above materials to the competent tax authority, the applicant’s seal or signature shall be affixed on the copy, and the competent tax authority shall keep the printed copy after verifying the original copy.
3. Taxpayers are required to submit paper documents when they go to the tax service hall to handle their tax affairs, or submit electronic documents according to the operation requirements of the online system if they handle their tax affairs online or through mobile terminals.
4. For materials not specified as original or printed copies in the “Materials Needed” list, the original copies shall be provided; for materials specified as printed copies, only printed copies shall be provided; for materials specified as original and printed copies, the printed copies will be collected and the original copies will be returned after verification.
5. The submitted printed copies must state its consistency with the original copies and be stamped with the company’s official seal.
1. Tax Service Halls (Click to view the location, opening hours and contact information of the tax service halls)
“City-wide Universal Processing” servicescurrently are not available in any of the tax service halls.
2. Self-service tax terminal service is currently unavailable.
3. Online service
No online services formutual agreement procedures are currently available.
Processing Authority
1. Where a Chinese tax resident or a Chinese national considers that the actions of a foreign tax authority of a treaty partner have resulted or will result in taxation which is not in accordance with the tax treaties (excluding special tax adjustments),such taxpayer may apply for initiating a MAP to the relevant Provincial Tax Authority and the Provincial Tax Authority will forward the file to the State Taxation Administration (STA).
2. If a foreign tax authority refuses to grant a tax treaty to a non-domestic-registered resident enterprise or identifies it as a tax resident of the country (region) in which it is located, the enterprise may apply for initiating a MAP to the competent tax authority and the competent tax authority will forward the file to the STA level by level.
Processing Time
1. Time limit for taxpayers
N/A.
2. Time limit for tax authorities
A provincial tax authority which has accepted an application shall report such application to the STA and notify the applicant thereof within 15 working days.
If an applicant refuses to accept a competent provincial tax authority’s decision to reject its application, it may file an objection application to the competent provincial tax authority or STA within 15 working days upon receipt of the authority’s notice in writing. Upon receipt of the objection application, the competent provincial tax authority shall submit the applicant’s materials, together with its own opinions and basis tothe STA within 5 working days. The STA shall deal with such application within 20 working days upon receipt.
Tel.
Please refer to the tax service map for contact numbers of each tax service hall.
Processing Procedure
Processing Result
The tax authority in charge will issue the Notice of Tax-related Matters to inform the taxpayer of the processing result.
Notices for Taxpayers
1. The tax authorities provide single-window service. Taxpayers need to visit the tax authorities only once at most on the precondition that the materials are complete and meet the legal requirements for acceptance.
2. The term “Chinese residents”refers to individuals, legal persons or other organizations that are liable to pay tax in China on income derived from sources both inside and outside of China in accordance with the relevant tax laws.
A Chinese resident may apply for initiating a MAP, ifthe taxpayer:
(1) holds an objection to the identification of resident status, in particular when the relevant tax treaty requires dual residency to be ultimately confirmed through a MAP;
(2) holds an objection to the determination of a permanent establishment or to the attribution of profits or deduction of expenses of such permanent establishment;
(3) holds an objection to the tax exemption or applicable tax rate for incomes and property;
(4) holds that there has been a violation of the non-discrimination provision of the relevant tax treaty, where tax discrimination may occur or has occurred;
(5) holds that there has been a dispute over the interpretation or application of other provisions in the relevant tax treaty which cannot be resolved by the relevant parties;
(6) may be or has been exposed to double taxation by different tax jurisdictions.
3. The term “Chinese national” referred to herein means any individual of Chinese nationality, or any legal person or other organization established underChinese law.
A Chinese national may apply for a MAP if the taxpayer holds that the other contracting state of the relevant tax treaty has violated any non-discrimination provisions of the same, where tax discrimination against the taxpayer may occur or has occurred.
4. An applicant should file an application for a MAP to a competent provincial tax authority in writing within the time limit prescribed in the relevant tax treaty.
Fees
Free of charge
Application Forms
The forms can be downloaded from the “Tax Services” – “Download Center” – “Form Download” section of the Shenzhen Tax Service website, State Taxation Administration (specific download address) or collected from the tax service halls.
Instructions for Filling out Forms
Please see the instructions for filling out as shown in the relevant forms.