Over recent years, the SAT has become increasingly concerned with tax abuse through transfer pricing in China. It is expected that with the release of Bulletin  42 on the new China Transfer Pricing Documentation Requirements and Bulletin  6 on Special Tax Investigations, Adjustments and Mutual Agreement Procedures by the SAT, many companies will be impacted by transfer pricing reviews and audits, in respect of all types of inter-company transactions. There is also always potential conflicts that can arise between tax authorities and taxpayers. Some of the more common issues include:
To avoid potential tax audit risks, it would be prudent for taxpayers to take positive and proactive steps to address the practical issues relating to the actual operation of the transfer pricing legislation, and to efffectively manage their transfer pricing audit risks in the Chinese business environment.
We have developed a range of Transfer Pricing Risks Management and Control tools to help multinationals to effectively conduct transfer pricing risk assessment and audit defense.
Key features of the software
Our transfer pricing software makes it easier to