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Application for Initiation of Tax Treaty Mutual Agreement Procedure by Chinese Residents (Nationals)
From: Shenzhen Tax Service, State Administration of Taxation
Updated: 2018-11-24

[Description]

A Chinese resident (national) may apply for initiation of a tax treaty mutual agreement procedure ("MAP") if it holds that the measures taken by the other contracting state has been or will be contrary to the levying activities (excluding special tax adjustment matters) specified in the relevant tax treaty.

[Materials Required]

1.To apply for initiation of a tax treaty MAP, an applicant shall submit:

No.

Materials Name

Quantity

Remarks

1

Application Form for Initiation of Tax Treaty MAP

3

Hard copies and e-copies are required.

2.If an applicant refuses to accept a competent provincial tax authority's decision to reject its application, the applicant shall submit:

No.

Materials Name

Quantity

Remarks

1

Objection Application Form for Tax Treaty MAP

3

Hard copies and e-copies are required.

[Time Limit]

1.For Taxpayers

(1) A taxpayer should file an application to the competent provincial tax authority in writing within the time limit prescribed in the relevant tax treaty.

(2) 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 the State Administration of Taxation ("SAT") within 15 working days upon receipt of the authority's notice in writing.

2.For Tax Authorities

A provincial tax authority which has accepted an application shall report such application to SAT 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 SAT 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 to SAT within 5 working days. SAT shall deal with such application within 20 working days upon receipt thereof.

[Result]

A Tax Matter Notice will be issued by the tax authorities to notify the taxpayers of the state of acceptance of its application.

[Notice to Taxpayers]

1.Taxpayers are responsible for the authenticity and legality of the materials they submit.

2.Taxpayers only need to visit tax authorities once if the materials are complete and the statutory conditions for acceptance are satisfied.

3. The term "Chinese resident" referred to herein means any individual, legal person, or other organization that, under applicable tax laws, is liable to tax in China on its income gained inside and outside of China.

A Chinese resident may apply for initiation of a MAP, if it:

(1) holds objection to residency ascertainment, in particular when the relevant tax treaty requires dual residency to be ultimately confirmed through a MAP;

(2) holds objection to determination of a permanent establishment or to the attribution of profits or deduction of expenses of such permanent establishment;

(3) holds objection to the tax exemption or applicable tax rate for incomes and property;

(4) holds that there has been 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.

4. The term "Chinese national" referred to herein means any individual of Chinese nationality, or any legal person or other organization established under the Chinese law.

A Chinese national may apply for a MAP if it holds that the other contracting state of the relevant tax treaty has violated any non-discrimination provisions of the same, where tax discrimination against it may occur or has occurred.

5. 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.

6. Addresses of taxpayer service halls and the website of e-tax bureau are available on the web portals of tax authorities or by dialing the (86-755)12366 tax service hotline.

[Charge]

Free of charge.

(Note: The text above is a translation of the Chinese version for reference only. In case of any discrepancy between the two versions, the original published Chinese version shall prevail.)