China Tightens Transfer Pricing Audits, Increases Scrutiny On Foreign-Domestic Deals
In order to increase tax revenues, The Chinese State Administration of Taxation (SAT) continues to strengthen its transfer pricing audit methods.
- (1888PressRelease) May 31, 2011 - Sunnyvale, CA - The SAT is likely to increase its audit coverage to cover companies that have converted from manufacturing to service based entities, intellectual property transactions and issues like cost sharing, thin capitalization, controlled foreign corporations, etc.
Read more at http://www.nair-co.com/ChinaTransferPricing.aspx?hilite=china
SAT investigated 178 transfer pricing cases last year. The renewed focus on transfer pricing audits has generated additional revenues of over USD382 million (RMB2.5bn) for the tax authority in 2010 up almost a quarter compared to 2009 and double the amount in 2008.
National Security Review
After the enactment of a national security review (NSR) process for foreign acquisitions of domestic businesses, local administrative agencies are now keeping an eye out for foreign-domestic deals which might fall under the purview of the NSR system.
Read more at http://www.nair-co.com/ChinaTransferPricing.aspx?hilite=china
It is not clear as to how many foreign-local deals have undergone the NSR process. However, it appears that local commerce administrative agencies are going to look out for deals which might fall under the purview of the NSR process such as foreign-domestic deals involving national economic security or national defence security issues.
Read more at http://www.nair-co.com/ChinaTransferPricing.aspx?hilite=china
About Nair & Co.
Nair & Co. provides an integrated solution in the HR, finance, tax, compliance and legal arenas making a company's overseas operations less risky, stress free and more strategic. It currently has 740+ client operations in over 50 countries with offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP).
###
space
space
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam