For foreign companies conducting business in Mainland China or Hong Kong, transfer pricing is a crucial consideration in establishing pricing methodologies for their goods or services. Transfer pricing has become the most important issue in international taxes, as all groups trading internationally can expect to be the subject of transfer pricing enquiries in one or more countries, regardless of how reasonable they consider their intra-group prices to be.

 

IT(HK) offers practical and defensible transfer pricing strategies consistent with clients’ corporate strategy, to mitigate the risk of transfer pricing adjustments and penalties. Their services include transfer pricing planning, preparation of transfer pricing documentation, a review of inter-company transactions with recommendations for transfer pricing methodologies, and advising on prices for intra-group transactions using economic databases to recommend prices that maximize legitimate tax savings while minimizing the risk of challenges by national tax authorities.

 

IT(HK)’s transfer pricing services also include assistance with obtaining advance pricing arrangements and negotiating Advance Pricing Agreements (APAs) with tax authorities. In cases of dispute, IT(HK) provides audit defense, appeals, competent authority services, voluntary disclosures, and assistance with annual compliance requirements in disclosing inter-company transactions with non-resident related parties.

 

The benefit of IT(HK)’s transfer pricing services includes the following:

 

1.      Practical and defensible transfer pricing strategies

2.      Mitigation of risk of transfer pricing adjustments and penalties

3.      Maximization of legitimate tax savings

4.      Compliance with national tax authorities

5.      Assistance with dispute resolution and audit defense

 

IT(HK)’s scope of transfer pricing services includes:

 

1.      Transfer pricing planning

2.      Preparation of transfer pricing documentation

3.      Review of inter-company transactions and recommendations for transfer pricing methodologies

4.      Advising on prices for intra-group transactions using economic databases

5.      Assistance with obtaining advance pricing arrangements and negotiating APAs

6.      Dispute resolution services, including audit defense, appeals, competent authority, and voluntary disclosures

7.      Assistance with annual compliance requirements for disclosing inter-company transactions with non-resident related parties

 

IT(HK)’s experience in transfer pricing enables them to provide clients with effective strategies and recommendations for their specific circumstances. With IT(HK)’s transfer pricing services, foreign companies can navigate the complex transfer pricing regulations in Mainland China or Hong Kong and the foreign country, ensuring compliance with national tax authorities and maximizing legitimate tax savings.