A comparative survey of cost contribution agreements - China and international best practices

This article reviews the tax treatment of a cost contribution arrangement in China (including the principles set out in China's new Enterprise Income Tax Law) in the light of the treatments in a selection of other countries, with the objective of ascertaining whether the law and practice in China conforms to international best practice. A result of a survey on how various countries have interpreted, incorporated or ignored the cost contribution agreement provisions of the OECD Guidelines is also presented.