Proposal for fool-proof corporate tax regime by year-end

A key government draft proposal that will seek to tackle multinational corporations' tax-avoidance will draw from a latest international tax rule, and is expected to be rolled out by the year-end, a top tax official said.

Wang Xiaoyue, vice-director of the International Taxation Department under the State Administration of Taxation, told China Daily the period of soliciting opinions on the draft proposal will soon end.

The proposal, which is known within the industry as the No 2 Document, is being closely watched by MNCs in China and tax professionals alike. For, it will give detailed guidance on what MNCs call "transfer pricing".