Announcement of the SAT on Regulating the Administration of Cost Allocation Agreements ("Announcement") has come into force on 16th July 2015
Recently, SAT has released “Announcement”, compared with “Circular of the State Administration of Taxation on Printing and Distributing the Implementing Measures for Special Tax Adjustments (for Trial Implementation)” (Guo Shui Fa [2009] No.2), Announcement has discentralized the approval right and strengthen the afterwards management on the management of the cost allocation agreements. The main contents as follows: Requirement for the record-filing of the cost allocation agreements The cost allocation agreement shall be filed to the local tax authorities instead of SAT. The annual report of related party transactions shall be submitted while submitting the annual income tax report. The management…