On December 19, 2023, the State Taxation Administration ("STA") of China published China Advance Pricing Arrangement ("APA") Annual Report (2022) ("2022 Annual Report") in bilingual languages. The 2022 Annual Report introduces the latest policies, procedures, and statistics of APA implementation, which provides important guidance for cross-border taxpayers to understand the current China APA practice. 

In recent years, the world economic becomes complex and changeable, and the international supply chain of cross-border enterprises is facing profound challenge, which brings many uncertainties to taxpayers' cross-border investment and operation. As one of the important measures taken by the STA to improve the tax business environment, China's APA program has been dedicated to providing more tax certainty, avoiding and eliminating double taxation, and motivating the vitality of operation for cross-border taxpayers.