Since the launch of Guoshuifa (2009) No. 2, the Implementation Measures for Special Tax Adjustments, in January 2009, transfer pricing has been an area of high interest of the State Administration of Taxation (SAT) in China.
Nation-wide and industry-wide focus: Spotlight on automotive and pharmaceutical businesses
The SAT continues to strengthen its focus on nation-wide and industry-wide transfer pricing audits. In a nation-wide audit, the PRC entities of multinational groups are simultaneously audited, while the industry-wide audits focus on companies engaged in specific industries. Recently, more attention has been given to those engaged in the automotive and pharmaceutical businesses, and retail chain stores. While increasing its workforce for transfer pricing cases, the SAT also plans to build certain industry-specialised teams to handle transfer pricing matters for particular industries.
Focus on other than buy-sell transactions
In addition to focusing...
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