Dear ,

First of all we would like to wish you a very successful 2009! Today we released our first new Press Release for this new year; we hope you will enjoy this release, which will be the first of many to come...

Shanghai, January 2009 - On 9 January 2009, the State Administration of Taxation (SAT) in China released the final version of the transfer pricing guidelines (in Guoshuifa [2009] No. 2) with effect from 1 January 2008.
These guidelines clarify the requirements of the SAT for multinationals to comply with the arm’s length principle from the Chinese perspective. The release of the final guidelines by the SAT represents a critical element in the establishment of a transfer pricing regime in China in line with international standards.

In addition to the requirement for contemporaneous documentation, nine detailed disclosure forms will be required to be submitted by all taxpayers with domestic or international related party transactions. These forms will provide the SAT with a significant amount of information in respect of the transfer pricing practices of all multinational enterprises in China from 2008 onwards. The SAT will use this information to identify taxpayers with the greatest potential for transfer pricing adjustments, and will carry out audits accordingly. The SAT has already stated that taxpayers that fail to prepare documentation when they are required to do so by the guidelines will be at high risk of transfer pricing audit.

The time to act is now.
Multinationals should examine and take strategic action with regard to their ransfer pricing positions and ensure that detailed documentation is prepared in order to manage the ignificant risk of double taxation and other costs arising from transfer pricing audits and subsequent tax adjustments...

To continue reading this important Press Release, we would like to invite you to our Global News page.

About Us
Transfer Pricing Associates (TPA) is the leading independent provider of global transfer pricing services and part of the TPA Global group. The TPA Global group is an independent and specialist provider of expert  transfer pricing, tax valuation and customs services, headquartered in Amsterdam and with our own offices and coverage in over 25 countries around the world.
TPA provides high quality transfer pricing advice and assistance to multinationals of all sizes, wherever they are located. For more details of our innovative services, please visit our website .