In a new International Practice Unit (IPU), the IRS charted audit steps its examiners should follow in reviewing the transfer pricing documentation of U.S. taxpayers that transfer and provide tangible property, intangible property, and service to foreign affiliates in exchange for payments (that is, outbound transactions). (more…)
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China plans to apply its value added tax (VAT) to all industries starting May 1.
The VAT will replace the business tax and apply to the industries that were previously subject to that tax, including the construction, real estate, and finance and consumer services industries. China will be among the first countries in the world to apply the VAT broadly to the financial services industry.
The replacement of the business tax with the VAT will ensure that the indirect tax burdens on all industries in China are reduced, said Premier Li Keqiang in a government work report to the national legislature. (more…)