Where Is China Now on Pillar 2?

Authors

Reuven S. Avi-Yonah, University of Michigan Law SchoolFollow

Document Type

Article

Publication Date

10-2024

Abstract

China has been relatively quiet about pillar 2 of the G20/OECD base erosion and profit-shifting 2.0 project. In a recent Tax Notes article, Xiaoli Ortega wrote:

Will China join the global tax reform club? If so, when? Although the Chinese government has made repeated positive statements about the importance of the global minimum tax reform, it has not clarified when it would modify its domestic tax laws to incorporate the pillar 2 rules. However, this does not mean that China is not preparing itself for the reform. Recall that on August 1, 2022, the State Taxation Administration issued a governmental announcement, indicating the beginning of the effectiveness of some tax treaties related to China under the BEPS framework. This announcement reveals that China has been passively dragged into the minimum tax reform project.

Comments

Reprinted with the permission of Tax Analysts.

Recommended Citation

Avi-Yonah, Reuven S. "Where Is China Now on Pillar 2?" Tax Notes International 116, no. 3 (2024): 425-429.