China joins OECD tax data compact
China has become the 77th party to an OECD agreement enabling the automatic annual exchange of tax-related information.
The country signed up to the Multilateral Competent Authority Agreement (MCAA) yesterday, which specifies which information will be exchanged and when, and renewed a co-operation agreement between the OECD and the Chinese tax authority for a further three years.
Both are important steps in implementing the think-tank’s reforms to the international tax system, known as the Base Erosion And Profit Shifting (BEPS) action plan. This was finalised in October and has been endorsed by world leaders.
Signatories to the MCAA, which include mostly of countries in Europe, Latin America, the Caribbean, Asia and the Pacific, will begin to exchange information in either 2017 or 2018.
