Transfer Pricing

Transfer Pricing and Sourcing Services

In China, the recent transfer pricing rules cover a variety of transactions such as purchases and sales, services, licensing of intangibles, lending and other transactions between related companies.

Today, transfer pricing audits are one of the top priorities for Chinas tax authorities for tax avoidance, and there are special anti-avoidance teams at the State Administration of Taxation as well as provincial and local tax bureau to enforce the transfer pricing rules.

In principle, all transactions between related companies are subject to transfer pricing rules in China and these transactions must be conducted at arm’s length values or otherwise the tax authorities may make adjustments to the prices.

Potential tax savings opportunities arise from appropriate and efficient transfer pricing planning strategies. 

Potential saving are also available in building effective sourcing operations in China for parts, components and raw materials and the continued growth of the Chinese economy are making the sourcing strategies even more significant. 

How we can help:

Our transfer pricing and sourcing team provides the following services: