On 5 Aug. 2022, China’s State Taxation Administration issued the “Announcement on the Entry into Force of ‘Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting’ and its Application to Certain Tax Treaties” (关于<实施税收协定相关措施以防止税基侵蚀和利润转移的多边公约>对我国生效并对部分税收协定开始适用的公告).
On 25 May 2022, upon the State Council’s approval, China deposited its instrument of approval for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (hereinafter the “Convention”) with the Secretary-General of the Organization for Economic Cooperation and Development (OECD), the depositary of the Convention. The Convention entered into force on 1 Sept. 2022 for China.
Developed by the OECD under a mandate from the G20, the Convention aims to introduce a package of amendments to the existing bilateral tax treaties and implement the tax treaty-related initiatives of the Action Plan on Base Erosion and Profit Shifting (BEPS).
The Convention will apply to the 47 tax treaties signed by China. The date of its entry into force for China was determined in accordance with Article 35 – Entry into Effect of the Convention.
As of 30 June 2022, 97 countries or regions, including China, have signed the Convention.
Cover Photo by Lin Zhang on Unsplash
Contributors: CJO Staff Contributors Team