The agreement was concluded based on negotiations between the tax authorities in Beijing and Copenhagen. The BAPA was earlier announced by the tax authorities in July 2009.
A BAPA is an agreement between the tax authorities of two countries to determine the split of a company’s income for taxation between the countries. For the company it creates predictability in relation to taxation.
Novozymes initiated the filing procedures in August 2008 and is very pleased with the short negotiation process. The tax authorities have shown a great commitment to the negotiations.
“We're very pleased with the agreement and are proud to be the first European company to finalize a BAPA with China,” says CFO Benny Loft and continues: “For a company like Novozymes it's important to operate under a clear framework to enhance predictability and avoid financial surprises.”
Novozymes strives to do business in a way that meets expectations of a good corporate citizen in all countries where it operates.