Hong Kong Transfer Pricing Services
The foreigner company that intends to sell goods or services to Mainland China or Hong Kong or a foreign business transacting in Mainland China or Hong Kong , it need to establish pricing methodologies based on transfer pricing rules in Mainland China or Hong Kong and the foreign country. Transfer Pricing has become the single most important issue in the field of international taxes. All groups trading internationally can expect to be the subject of transfer pricing enquiries in one or more countries, however reasonable they consider their intra-group prices to be.
The foreigner company will also have to determine, use, and document arm’s length pricing to mitigate the risk of transfer pricing adjustments and penalties. IT(HK) can develop transfer pricing strategies that are practical, defensible and consistent with your overall corporate that are practical, defensible and consistent with your overall corporate strategy.
Our transfer pricing services include:
- Transfer pricing planning.
- Preparation of transfer pricing documentation.
- A review of inter-company transactions and provision of recommendations for transfer pricing methodologies.
- Advising on prices for intra-group transactions, using proven economic databases to recommend prices which maximize legitimate tax savings whilst minimizing the risk of successful challenges by national tax authorities.
- Advising on prices for intra-group transactions, using proven economic databases to recommend prices.
- Assistance with obtaining advance pricing arrangements.
- Where appropriate, negotiating Advance Pricing Agreements (APAs) with tax authorities. Some countries offer an APA facility, under which a group's transfer pricing policies are voluntarily disclosed to the authority and discussions ensue as to whether they are fair. In some circumstances this can be the right way to proceed.
- Dispute resolution – audit defense, appeals, competent authority.
- voluntary disclosures.
- Annual compliance requirements in disclosing inter-company transactions with non-resident related parties.