State Administration of Taxation, Joint Tax Audit of Foreign-related Enterprises Tentative Procedures

Issued: April 6 2004
Effective: as of date of issue
Interpreting authority: State Administration of Taxation
Applicability: The Procedures apply to tax audit of foreign-invested enterprises and foreign enterprises (Foreign-related Enterprises).

Main contents: There are two types of joint tax audit: (1) tax audit conducted simultaneously by all competent tax authorities in respect of foreign-related enterprises that involve cross-regional operations and pay income taxes in a consolidated manner; (2) joint tax audit conducted by state taxation bureaux and local taxation bureaux responsible for levy and collection of taxes in respect of foreign-related enterprises operating in the same region (Section Two). A joint tax audit of a foreign-related enterprise may not be conducted more than once in a tax year.
Related legislation: PRC Administration of Levy and Collection of Taxes Law (Revised in April 2001), Apr 28 2001, CLP 2001 No.5 p12 & CLP 1995 No.3 p12 and PRC Administration of the Levy and Collection of Taxes Law Implementing Rules, Sep 7 2002, CLP 2002 No.8