Textiles & Apparel / Garment

2021-03-11

Guangdong Esquel Textiles signs APA with Foshan Gaoming Local Taxation Bureau

Congratulations to Esquel's subsidiary Guangdong Esquel Textiles (GET) for reaching an Advance Pricing Agreement (APA) with Foshan Gaoming Local Taxation Bureau, effective for the next four fiscal years. Tax authorities grant APAs to trusted companies that have a proven track record of transparency in their financial management. The APA with GET marks the first successful case of an expedited process in Guangdong province, slashing the negotiation period from what can take several years to just six months.

Located in Gaoming district, Foshan, GET is Esquel's flagship manufacturing base and technology hub. By securing confidence in its corporate operations and financial standing, the APA benefits both parties, reducing the workload of the taxation authorities and improving tax services while also facilitating Esquel to conduct better financial planning and manage related risks.

The signing of the agreement demonstrates innovation in handling procedures and management thinking. It is also a concrete manifestation of the state tax administration's support for entity enterprises, and will help Esquel to make use of Foshan as a focal point for further business development in the Greater Bay Area.

Many countries are utilizing APAs; tax authorities negotiate with companies to agree upon a profit distribution model and standard contract for a fixed period of time based on the fair application of the armâ€™s length principle, for enterprises that handle cross-border taxation issues.