China and Denmark formally sign the first bilateral reservation pricing arrangement

October 26, 2009, the State administration of Taxation, deputy director Wang Li and the Danish customs commissioner of Inland Revenue oral Kejie respectively on behalf of the two countries tax authorities formally signed the first bilateral reservation pricing arrangements between the two countries. This arrangement involves a well-known multinational company in the relationship between our country and Denmark transactions.　　This is the first bilateral reservation pricing arrangement between China, China and Korea after the successful signing of bilateral reservation pricing arrangement, which is also the first bilateral reservation pricing arrangement between the two countries. The bilateral reservation pricing arrangement refers to the agreement reached between the tax authorities of the two countries on the pricing principles and methods of the affiliated transactions between the multinational group companies, which are usually applicable for the next 3 to 5 years.　　Upon application by the enterprise, the booking pricing arrangement can also be used to solve the transfer pricing problem of the previous year. With the economic globalization and the development of multinational corporations, the bilateral reservation pricing, as a means to solve the transfer pricing problem of multinational corporations, has been paid more and more attention by the tax authorities and multinational corporations, which has become an effective measure to resolve international tax disputes and avoid international double taxation, and can provide certainty for the operation of multinational　　Under the current economic background, bilateral tax consultation is of great significance in improving the level of tax service and alleviating the impact of financial crisis on enterprises.　　Deputy director Wang Li said: the first bilateral reservation pricing arrangements in the formal signing, to further promote the Sino-Dan, and even between China and the EU International Tax exchange and cooperation, promote the development of transnational investment, deepen the traditional friendship between China and Dan. So far, our country has officially signed 9 bilateral reservation pricing arrangements. There are also about 50 bilateral booking pricing arrangements under review.