第十五条（二） 6

Article 15.2.6

6.集团财务报告年度期间发生的企业法律形式改变、债务重组、股权收购、资产收购、合并、分立等重组业务。

A description of important legal restructuring activities, debt restructuring, equity acquisitions, asset acquisitions, mergers, splitting, and other types of restructuring occurring during the fiscal year.

此条条款并没有在OECD的BEPS行动计划13中的主体文档中列示

This requirement was not included in the BEPS Action 13 Master File template

建议税总取消这条要求，因为如果全世界其他国家都没有这个要求，单为了中国去披露集团的这些变化很难让集团总部接受，单从中国方无法得到相关信息

Suggest SAT to remove this requirement to be consistent with OECD template. Otherwise it is very hard to have the headquarter collect such information just to meet the requirement to China, local Chinese entities won’t be able to collect such group information alone.

第十六条（三） 2

Article 16.3.2

2.价值链分析
　　（1）集团内业务流、物流和资金流，包括商品、劳务或者其他交易标的从设计、开发、生产制造、营销、交货、结算、消费、售后服务、最后循环利用等各环节及其参与方。
　　（2）上述各环节参与方最近财务报告年度的财务报表（包括个别报表和合并报表）。
　　（3）集团利润在全球价值链条中的分配原则和分配结果

Value chain analysis，taxpayers are required to disclose the following info:

The group’s operation flow, physical flow, cash flow within group, including functions from design, development, manufacturing, marketing, delivery, billing, consuming, after-sales service and recycling etc.

Financial statements for the latest financial year of the involved parties (including standalone financial statements and the group consolidated statements)

Allocation principle and allocation outcome of the group’s profit in the group value chain

此条条款并没有在OECD的BEPS行动计划13中的本地文档中列示

This requirement was not included in the BEPS Action 13 Local File template

建议税总取消这条要求，因为如果全世界其他国家都没有这个要求，单为了中国去准备集团的这些信息很难让集团总部接受，单从中国方无法得到相关信息。其中第一条及第三条信息应该已经包含在主体文档中了

Suggest SAT to remove this requirement to be consistent with OECD template. Otherwise it is very hard to have the headquarter collect such information just to meet the requirement to China, local Chinese entities won’t be able to collect such group information alone. Item 1 and 3 should already be covered by the Master File

第十六条（三） 3

Article 16.3.3

3.对外投资
　　（1）对外投资基本信息，包括对外投资项目的投资地区、金额、主营业务以及战略规划。
　　（2）对外投资项目概况，包括对外投资项目的股权架构、组织结构，高级管理人员的雇佣方式，项目决策权限的归属。
　　（3）对外投资项目数据，包括对外投资项目的营运数据。

Outbound investment projects

Basic information relating to foreign investment, including the jurisdictions to which the investment projects invest, amount, principal operations and strategic plans

Overview of foreign investment projects, including shareholding structure, organizational structure, employment of senior management, designation of decision making authority, with respect to the foreign investment projects

The financial information of the foreign investment, including the operational statistics of the foreign investment projects.

此条条款并没有在OECD的BEPS行动计划13中的本地文档中列示

This requirement was not included in the BEPS Action 13 Local File template

建议税总取消这条要求，保持和OECD要求一致。因为如果全世界其他国家都没有这个要求，单为了中国去收集这些信息很难让集团总部接受，很多投资信息分散在各处，收集难度大。并且如果都需要翻译成中文就会急剧加大企业的遵从成本

Suggest SAT to remove this requirement to be consistent with OECD template. Otherwise it is very hard to justify to the headquarter for collecting such information just to meet the requirement to China, local Chinese entities won’t be able to collect all the information alone. As all such documents need to be translated into Chinese, this will dramatically increase compliance burden

第十六条（三） 4

Article 16.3.4

4.关联股权转让
　　（1）股权转让概况，包括尽职调查报告、转让背景、参与方、时间、定价方法、支付方式，以及影响股权转让的其他因素。
　　（2）股权转让标的相关信息，包括股权转让标的的地理位置，股权获取的时间、方式、成本，股权转让收益等信息。
　　（3）股权转让标的资产评估报告。

Related party equity transfers

Overview of equity transfer, including due diligence report, background, engagement parties, timing, pricing method, payment method of the transfer, as well as other factors affecting the equity transfer

Relevant information of the target of the equity transfer, including information like the target’s geographic location, timing, methodology, cost of the transfer, income generated from the transfer, etc.

Asset evaluation report on the target of the equity transfer

此条条款并没有在OECD的BEPS行动计划13中的本地文档中列示

This requirement was not included in the BEPS Action 13 Local File template

建议税总取消这条要求，保持和OECD要求一致。因为如果全世界其他国家都没有这个要求，单为了中国去收集这些信息很难让集团总部接受，很多相关信息分散在各处，收集难度大。并且如果都需要翻译成中文就会急剧加大企业的遵从成本

Suggest SAT to remove this requirement to be consistent with OECD template. Otherwise it is very hard to justify to the headquarter for collecting such information just to meet the requirement to China, local Chinese entities won’t be able to collect all the information alone. As all such documents need to be translated into Chinese, this will dramatically increase compliance burden

第十九条

Article 19

第十九条　符合下列情形之一的企业，应当准备同期资料特殊事项文档：
　　（一）存在关联劳务交易。
　　（二）执行成本分摊协议。
　　（三）违反资本弱化相关规定。
　企业应当按照本办法第七章、第九章和第十一章的有关规定准备同期资料的特殊事项文档。

19 Entities should prepare special items file if meet one of the criterial below:

1)     Have related party service transaction

2)     Have cost sharing arrangement

3)     Violates thin capitalization rules

Entities should prepare special items file according to Chapter 7,9 and 11.

此条没有明确服务交易的门槛值或者安全港条款。这是否意味着纳税人需要报告每一笔关联劳务交易，不管其金额大小；如果需要报告每笔交易，这将给纳税人带来沉重的遵从成本

This term does not specify any threshold or safe harbor clauses for related party services. Does that mean we have to document each transaction for related party services, which would be a great burden to Intel China entities

建议总局从重要性原则及纳税人遵从成本考虑加入一定门槛值或安全港条款

Suggest SAT to add threshold or safe harbor clause for related party services taking into account the importance principle as well as compliance burden to tax payers

第三十五条（一）

Article 35．1

第三十五条  其他方法包括价值贡献分配法、资产评估方法等方法。

（一）价值贡献分配法通过分析价值创造因素对跨国集团利润的贡献，将其合并利润在位于不同国家的关联企业之间进行分配。分配时应当考虑与价值贡献相关的资产、成本、费用、销售收入、员工人数等某一个或者某组要素组合。

价值贡献分配法通常适用于难以获取可比交易信息但能合理确定合并利润以及价值创造因素贡献的交易。

35 Other methods include value contribution allocation method, asset valuation method and others

35.1The value contribution allocation method (VCM) distributes the total profit of a group among related party entities in different countries through the analysis of each value contribution factors’ contribution to the total profit. In the allocation, factors in related to the contribution to the total profit, including assets, costs, expenses, revenue, staff headcount, etc., should be considered. 

The VCM is applicable where comparables are difficult to find but an allocation formula can be reliably determined. 

此种方法并非国际公认方法，需要更明确此方法与其他方法的明确区别，并需要具体计算方法及应用实例演示，否则容易引起国际税务争端

This is not an internationally agreed method and needs clarity on how this method is different from other methods. Also taxpayers need explanation examples on cases for this method to apply and how to do the calculation. Otherwise international tax disputes will arise

建议总局取消这条条款，保持和国际惯例一致。或者要给出更明确，具体的关于此种方法的具体应用实例及计算方法的指导

Suggest SAT to remove this method and be consistent with global standard. Or please give clearer and more detailed application cases and calculation under this method

第五十一条

Article 51

第五十一条　税务机关对企业与其关联方签订的关联交易合同进行调查审核时，发现合同中关联交易在可比经济条件下独立第三方之间不可能发生，可以否定或者重新定性该关联交易。

对企业已履行的功能或者承担的风险，超过独立企业愿意承担的部分，应当由其关联方给予合理补偿。

Article 51: If a contract for transaction between related parties would not have occurred under equivalent economic circumstances between unrelated parties then the transaction may be deemed not to have occurred or may be re-characterized by the tax authorities.

Where the functions conducted/risks borne by an enterprise for its related party exceed that which an independent party would have been willing to do then compensatory arrangements shall be made by its related party.

应该更明确何种情况税务机关可以认为独立第三方不会发生。因为税务机关对企业商业运营知识有限，如果单凭合同去判断而不结合实际运营状况及企业相关解释，会影响税务中性原则，使得税务对在华企业正常运营产生负面影响。

There should be more clarity on under which circumstances that tax bureaus will deem such transactions not exist in third party arrangement. As tax bureaus may not have enough industry knowledge, merely based on reading of the contracts, without understanding actual operation as well as entity explanation, it is highly likely that this will violet tax neutralization principle and make tax an negative impact to China business operation

建议税总取消此条，如果企业有反避税嫌疑，可以补交相应税款，但是不应该从税务的角度去影响企业正常运营决策。或者在此条运用时列示更明确具体使用条件，并且加以严格限制，比如任何重新定性都必须经过总局审批。

Suggest that SAT remove this term. Tax bureau can adjust tax payment if entities violates anti-avoidance requirement. However tax should not jeopardize entities’ daily operation strategy. Or there should be more detailed instructions as under what circumstances should this apply and also there should be strict restrictions on local tax officers in using this term, for example, each re-characterization case should be approved by SAT

第五十二条

Article 52

第五十二条　税务机关应当选用本办法第四章规定的转让定价方法分析、评估被调查企业关联交易是否符合独立交易原则，分析评估时可以使用公开信息资料，也可以使用非公开信息资料。

Article 52: Tax authorities shall select transfer pricing methods as specified in Chapter 4 of the Circular to analyze and evaluate the arm’s length nature of related party transactions.  Both publicly available information and non-public information can be used during analyses and evaluations.

使用非公开信息资料会加大企业的不确定性，因为企业在制定转让定价政策的时候是没有办法接触的非公开信息的。如此造成企业和税务局的信息不对称，企业因为非公开信息被调整是不公平的。会毁坏企业和税务局之间建立互信关系。

Using private database will increase uncertainty to entities as entities will not be able to get access to non-public information when we set up our transfer pricing policies. Therefore this will create information asymmetry between tax payers and tax bureaus. It is unfair for tax payers to get adjusted per  non-public information and will damage the mutual trust relationship between tax payers and tax officers.

建议税总取消使用非公开信息。

Suggest SAT to remove the use of  non-public information .

第五十三条

Article 53

第五十三条　税务机关分析、评估被调查企业关联交易，从公开信息资料或者非公开信息资料中筛选可比对象组时，应当优先考虑可比对象质量。在可比性非常强的情况下，可以只选一个可比对象。

税务机关可以采用简单平均、加权平均或者四分位法等合理的统计方法，逐年分别计算或者多年合并计算已筛选可比对象的平均值或者中位值作为可比利润水平或者可比价格。

税务机关根据实际情况，可以按照可比利润水平或者可比价格对被调查企业各年关联交易进行逐年调整或者多年统一调整。

Article 53: Tax authorities shall give priority to the quality of comparables when identify comparables from publicly available information or non-public information in analyzing and assessing the related party transactions of the enterprises under investigation.  Tax authorities can select one comparable only if it has very high comparability. 

When determining the comparable profit / price, tax authorities can use reasonable statistical methodology, such as simple average, weighted average or interquartile methodology and etc, to calculate the average or median value of selected comparables by each individual year or consolidated multiple-year.

Based on the actual situation, tax authorities can make adjustment on the transactions under investigation by each individual year or by multiple years according to the comparable profit / price.

简单平均或加权平均并非现行转让定价领域国际通用统计方法，由于简单平均或加权平均会对某些异常数值特别敏感而造成对整体数据的错读，基本上国际上的统计方法都会采用更能反映数据整体情况的四分位法。事实上印度也已经在考虑使用四分位法而非平均数。

Simple average and weighted average method are not globally agreed statistic method for transfer pricing. As simple average or weighted average will be sensitive to some out layer numbers in the data pool and will distort the whole data pool, basically inter-quartile range is the internationally adopted statistic method for better reflection the overall data poo. In fact, even India is considering using inter-quartile instead of average for their transfer pricing assessment.

建议税总取消简单平均及加权平均的使用。

Suggest SAT remove the use of simple average and weighted average.

第五十五条

Article55

第五十五条 税务机关分析、评估被调查企业关联交易时，除本办法第五十六条规定外，对因营运资本占用不同产生的利润差异不做调整。
Art.55 When the authority analyzes and evaluates an enterprise’s related party transactions, the difference in operating profit caused by operating assets difference between the enterprise and the comparable enterprise should not be adjusted

化工行业是资本密集度高的行业，资本密集度对其营业利润有很大的影响，因营运资本占用不同产生的利润差异所进行的调整对可比性分析非常重要。
The chemical business is highly capital intensive, where capital intensity can have large effect on operating income of the company. The application of working capital intensity adjustment is important to ensure comparability. (Please note most of our TPD applies working capital intensity adjustment) (Art 38)

建议允许资本密集度高的行业进行调整。

Suggest allow capital intensive industry to make the adjustment.

第五十七条

Article 57

第五十七条　税务机关审核评估被调查企业关联交易时，应当分析成本节约、市场溢价等地域性特殊因素，并采用合理方法确定为被调查企业带来的额外利润。

Article 57

When the tax authorities assess the related party transactions, location saving, market premium as well as location-related factors should be taken into consideration, and quantify with reasonable methods the premium profit attributed to these factors.

成本节约及市场溢价都是比较新的概念，国际上也缺乏估定相关价值的具体指导意见，如果总局要税务机关应用，希望能给出更具体的应用实例及计算方法，减少企业因为这些新概念而产生的不确定性。

Location saving and market premium are relatively new concept and there is not much international guidance available for how to evaluate such items. If SAT is determined to adopt such concepts, there needs to be more detailed application cases and calculation methods. Therefore to reduce the uncertainty to tax payers due to these new concepts.

建议总局给出更明确、具体的使用条件，适用实例及具体计算方式，并且加以严格限制，比如任何相关调整都必须经过总局审批

SAT should publish clearer and more detailed application criterial, use cases and calculation methods. Also there should be strict restrictions on local tax officers in making assessment on these new concepts, for example, each case should be approved by SAT.

第六十五条

Article 65

第六十五条　企业收到《特别纳税调查调整通知书》后，应当按照税务机关规定的期限内缴纳税款，并作相应账务调整。未作相应账务调整的，对调增的应纳税所得额，视同企业向投资方做出利润分配决定，并按有关规定征税。

主管税务机关应当及时跟踪已作相应账务调整调增的应纳税所得额汇入情况，并可以责令限期汇入，逾期仍不汇入的，视同未做上述相应账务调整。

以人民币以外的货币汇入调增的应纳税所得额时，应当以调增的应纳税所得额为准，按照汇入当日人民币汇率中间价计算需汇入的外币金额。

Article 65

When receiving the Letter of Transfer Pricing Adjustment, companies should pay the adjusted tax, and adjust their accounting books and made the payments for such accounting books true ups within given time limit. If no corresponding true up is made, the taxpayer will be treated as having made a dividend distribution to its foreign counterparty and pay relevant tax.

The in-charge tax authority should track the status of tax payment from the taxpayer; if the taxpayer fails to transfer the payment amount within time limit, it will be treated as failing to make corresponding adjustment.

If the taxpayer made the payment for the adjusted tax amount in the currency other than RMB, the central parity of RMB exchange rate on the payment date will be employed to calculate the amount in RMB.

通常转让定价调整不一定要企业在相应调整交纳税款后同时也调整账目的。因为如果只是一方税务局做出转让定价而另一方税务局并未同意，那么调账可能不止造成企业在中国交纳的调整款不能在对方国家抵扣，甚至会影响企业在对方国家的财务账目真实性及现金流等。另外税务机关做出的如此要求是否已经和海关、外汇管理局及银行做过沟通，由于这几方的政策经常不一致，导致税务单方面的要求给企业造成巨大实际应用的困难。

 A transfer pricing adjustment will not usually lead into an accounting true up. If China made such adjustment and the other tax bureau has not agreed on that, such true up in accounting will result in double tax for entities, incorrect accounting reporting in other country as well as negative impact on cash flow. In addition, whether such requirement has been aligned with other government bodies such as Customs, SAFE, banks will make significant difference on how in practice this can be done. If there is no such alignment yet, one-side decision from tax bureau will create huge difficulties for tax payers to be compliant to such requirement.

建议税总取消账务调整的要求，或者加上在相关调整得到对方税务局认可后再进行账务调整。另外如果一定要实行，请税局和海关，外汇管理局，银行等相关部门取得一致意见。

Suggest SAT to remove such accounting true up requirement. Or adding a pre-condition that only after the other tax bureau agrees on the adjustment, should entities revise their accounting books. In addition, there should be pre-alignment among SAT, Customs, SAFE, banks before SAT make such requirement into force.

第六十七条

Article 67

第六十七条　税务机关对企业实施特别纳税调整，涉及企业向境外关联方支付利息、租金、特许权使用费的，不得调减已扣缴的税款。

Article 67

When the tax authority making special tax adjustment, if it is related to outbound payment of interest, rent or royalty, to overseas related parties, the tax authority shall not adjust to decrease the withholding tax amount.

避免双重征税是国际税收的一个共识，然而这条条款关于不得调减已扣缴的税款的规定明显违背了此条共识。

Avoid double taxation should be a consensus of international taxation. However this term about disallowing the adjustment on overpaid withholding tax is a violation to such consensus.

建议税总取消“不得调减已扣缴的税款”这样的要求，如果有特别纳税调整，那么相应多扣缴的税款就应该退回企业。

Suggest SAT to remove the term “shall not adjust to decrease the withholding tax amount”. If there is overpaid withholding tax due to anti-avoidance adjustment, tax payer should have the right to collect this back.

第七十二条

Article 72

第七十二条  无形资产收益分配应当与经济活动和价值贡献相匹配，根据各关联方在无形资产开发、价值提升、维护、保护、应用和推广中履行的功能，使用的资产，承担的风险以及投入的必要资金、人力及其他资源，考虑无形资产价值的实现方式，判定各方对无形资产价值的贡献程度，在各方之间进行分配。

The income rising from intangibles should be allocated in accordance with the value creation of each party. When allocating income arising from intangibles, taxpayers should analyze each related party's function undertaken, assets employed risk assumed, as well as necessary capital and human resources invested, etc. throughout the development, value enhancement, maintenance, protection, exploitation and promotion of intangibles, including taking into account how the value of intangibles is realized, so as to determine each party's value creation to the intangibles.

无形资产收益分配考虑价值贡献是比较新的概念，国际上也缺乏估定相关价值贡献的具体指导意见，如果总局要税务机关应用，希望能给出更具体的应用实例及计算方法，减少企业因为这些新概念而产生的不确定性。

Considering value creation for intangible income allocation is also a relatively new concept and there is not much international guidance available for how to evaluate such items. If SAT is determined to adopt such concepts, there needs to be more detailed application cases and calculation methods. Therefore to reduce the uncertainty to tax payers due to these new concepts.

建议总局给出更明确、具体的使用条件，适用实例及具体计算方式，并且加以严格限制，比如任何相关调整都必须经过总局审批

SAT should publish clearer and more detailed application criterial, use cases and calculation methods. Also there should be strict restrictions on local tax officers in making assessment on such new area, for example, each case should be approved by SAT.

第七十二条（三）

Article 72.3

（三）无形资产形成和使用过程中，仅提供资金，不实际履行相关功能和承担相应风险的参与方，只应当获得合理的资金成本回报；仅拥有无形资产法律所有权，未对无形资产价值做出贡献的，不应当参与无形资产收益分配。

The related party that merely funds intangible development activities but does not perform any functions or assume any risks should only be  entitled to earn a financing return; The related party that owns bare legal ownership but does not contribute to the value creation should not be entitled to any intangible-related profits at all.

这条条款在OECD尚处在讨论阶段并未得到大家一致的同意。如果现在中国就把它立法的话可能引起国际争端。而且税总的观点并非与第三方实际情况一致。好比第三方的风险投资公司，他们也只投资而不参与其他日常运营，可是一旦成果出来了通常风险投资公司会得到绝大部分的利润。

This term is also under discussion in OECD, however so far there has not been consensus arrived. If China go ahead and make such rule, it is likely to trigger international tax dispute.  And the conclusion of SAT may not be consistent with third party arrangements. For example, there are venture capital entities who will only invest money into companies and will not get involved in daily operation of those companies. However most profit of the companies will belong to the venture capitals.

建议税总取消这条。可能等到OECD的讨论有了更明确的结果并且绝大部分国家都有一致结论后再考虑会更合适。

Suggest SAT to remove this term and it is better to wait till there is consensus agreed by most countries at OECD BEPS discussion on this topic.