Tax policy advisory services

In recent years, tax authorities in China have strengthened the use of big data to conduct more targeted tax inspections on tax violations. Ongoing tax reforms and legislative changes in China create uncertainty and unpredictability for enterprises of all kinds. Discrepancies between the common understanding of tax policies and local implementation practices can easily lead to tax disputes. These then result in a greater demand for pre-consultations with tax authorities, especially prior to the implementation of significant tax arrangements.

KPMG China’s tax policy advisory services team is experienced in dealing with tax disputes. Based on our in-depth understanding of tax policy and extensive communication channels with policy section of the tax authorities, we offer:

Assistance to clients in dealing with tax inspections and in preparing relevant tax documentation to support the reasonableness of the adopted tax treatment, providing specific solutions to minimize losses to the extent permitted by the tax regulations.

Assistance to clients with tax issues arising in corporate restructuring and in relation to obtaining tax incentives, deductions and refunds. For cases where ambiguities in tax regulations give a great deal of discretion to tax authorities, we can assist clients in analysing the tax implications of different arrangements, understanding local implementation practices, negotiating with tax authorities at all levels and completing relevant tax application forms and filings.

We can help convey the concerns and views of enterprises and industry bodies to tax policymakers, with a view to building a supportive tax environment.

We can provide solutions to a series of tax disputes encountered by enterprises in the process of going public and restructuring, including:

• Tax issues arising for company founders
• Planning and implementation of investment institutions restructuring
• Tax adjustment in historical periods for compliance purposes
• Tax treatments feasibility analysis for innovative business, etc.