Non-resident enterprises should be careful about their financial strategies to avoid unexpected and unnecessary tax exposure in China Mar. 13 – China’s State Administration of Taxation (SAT) announced that its tax revenue from non-resident enterprises (NREs) reached RMB102.6 billion (US$16.16 billion) in 2011, exceeding RMB100 billion for the first time and reporting a 31.8 percent […]
Mar. 1 – The profitability of multinational corporations (MNCs) will be the main focus of Chinese tax authorities during the annual inspection of related-party transactions in 2012, according to a recent report by Shanghai Securities News. China’s State Administration of Taxation (SAT) aims to establish a comprehensive enterprise index system this year, which will contain […]
Dec. 7 – An important area of focus during the Fifth International Taxation Conference in Beijing last week was the issue of transfer pricing and its implications for enterprises with subsidiaries in China – an area of regulation that is becoming increasingly complex. To help readers navigate these regulations, China Briefing dedicated its entire November […]
With the release of comprehensive transfer pricing regulations in early 2009, China’s tax authority – The State Administration of Taxation – sent a very clear signal that it is serious about protecting its revenue base and actively enforcing the arm’s length principle for pricing of intragroup transactions, e.g. transactions between a headquarters overseas and its wholly foreign-owned enterprise in China.
In this issue, we discuss cross-border inter-company transactions and the documentation you will need to submit to keep up with the increasingly powerful transfer pricing regulation implementation in China. We also include the specific steps a WFOE in China has to undergo in order to remit funds between its headquarters and clients, and alert investors as to when transfer pricing issues and duplicate taxation issues are triggered.