National rules in respect of a Tax Control Framework,
differences due to size
China's State Administration of Taxation (SAT) established
the Large Business Taxation Department in 2008. The Department
is seeking to develop a new approach to supervise taxation and
control the company tax risk via TCF. SAT issued two circulars
on the TCF in 2009 and 2011 respectively.
The circular issued in 2009 introduced a guideline on TCF for
large businesses and suggested a set of key elements for the
internal TCF system.
Another circular issued in 2011 is on the tax administration of
large businesses. This circular specified the definition of a large
business as being the group companies earmarked by SAT and the tax
authorities at the provincial level. Some provincial tax
authorities have rolled out their own regulations for the
administration of local large businesses.
