Transfer Pricing Services

Whilst transfer pricing has long been an acceptable taxation strategy all over the globe, the current China government is tightening the tax loop-holes at a rapid pace, and catching many companies in breach of the laws with the transfer pricing regulations rapidly developing in China. Moreover, the Chinese authorities even target transfer pricing adjustments as a major tax revenue earner in the years to come. FIEs in China are required to report annually their transactions between related parties and have been frequently questioned whether arm's length prices have been adopted. Under China's transfer pricing rules, it is easy for two companies to be considered "related parties", while in many other countries the same parties may not be considered associated. Therefore, it is very important for FIEs to assess their transfer pricing risks as well as prepare appropriate documentations for the transfer pricing policies for China operations in professional measures.

Hendersen assists you on the planning and structuring of transfer pricing policies in China. With our professional experience, we are able to minimize your tax exposures and enhance your risk management on related party transactions through a combination of our following services:

• Transfer Pricing Risk and Opportunity Assessment Review
• Functional Analysis and Benchmarking
• Advance Pricing Agreement with Tax Authorities
• China Profit Alignment Stud
• Defense Documentation Preparation