New China Briefing and Technical Guide Examine Transfer Pricing in China

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May 4 – The May issue of China Briefing magazine is online and available for download (complimentary subscription available).

Transfer pricing is a reality for most multinational companies in China, and with the implantation of the new Enterprise Income Tax Law, the arm’s length principle for pricing group transactions is now being actively enforced. In the May issue of China Briefing, we take a look at how transfer pricing works in China, the supporting documentation needed when filing tax returns, how to properly manage transfer pricing risk, and how to deal with transfer pricing audits and enforcement by the Chinese authorities.

We also conclude our long-running series on second- and third-tier cities in China with Suzhou and Chongqing. The series, which began in January of 2008, covered five major regions of China and provided overviews to 54 second- and third-tier cities. The complete archive of this series can be accessed on the website.

In addition, we are proud to announce the publication of a complete technical guide to transfer pricing in China. Produced in association with Transfer Pricing Associates, a specialist global transfer pricing firm, this is an essential work for any businessman trading with or conducting business in China. The book deals with all aspects of transfer pricing from a practical perspective, from designing and implementing a transfer pricing system, to managing China compliance and preparing for an audit.

Transfer Pricing in China.inddThe book includes:
Designing and Implementing a Transfer Pricing System
Identifying the Relevant Business Context
Transfer Pricing Disclosures and Documentation
Tax Return Disclosures
Managing China Compliance
Preparing Documentation
Transfer Pricing Risk Management
Transfer Pricing Audits and Enforcement
Income Adjustments
Penalties and Interest
Managing an Audit
Advance Pricing Arrangements
Cost Sharing Agreements
Thin Capitalization

Related Reading

Transfer Pricing in China 2016Transfer Pricing in China 2016
Transfer Pricing in China 2016, written by Sowmya Varadharajan in collaboration with Dezan Shira & Associates and Asia Briefing, explains how transfer pricing functions in China. It examines the various transfer pricing methods that are available to foreign companies operating in the country, highlights key compliance issues, and details transfer pricing problems that arise from intercompany services, intercompany royalties and intercompany financing.

Annual_Audit_and_Compliance_in_China_2016Annual Audit and Compliance in China 2016
In this issue of China Briefing, we provide a comprehensive analysis of the various annual compliance procedures that foreign invested enterprises in China will have to follow, including wholly-foreign owned enterprises, joint ventures, foreign-invested commercial enterprises, and representative offices. We include a step-by-step guide to these procedures, list out the annual compliance timeline, detail the latest changes to China’s standards, and finally explain why China’s audit should be started as early as possible.

CB 2015 2 issue cover 90x126

Managing Your Accounting and Bookkeeping in China
In this issue of China Briefing, we discuss the difference between the International Financial Reporting Standards, and the accounting standards mandated by China’s Ministry of Finance. We also pay special attention to the role of foreign currency in accounting, both in remitting funds, and conversion. In an interview with Jenny Liao, Dezan Shira & Associates’ Senior Manager of Corporate Accounting Services in Shanghai, we outline some of the pros and cons of outsourcing one’s accounting function.