Transfer Pricing in China: 5 Things All Foreign Companies Doing Business in China Should Know

Though in the past transfer pricing was mostly a topic of concern for larger multinationals, as a result of these global developments transfer pricing has also become a topic of increasing interest for small and medium sized enterprises. In practice, however, many SMEs still lack the knowledge and understanding of transfer pricing, and as of our experience we learned that not many companies have sufficient knowledge about this, particularly in a China setting. To help increase the understanding of transfer pricing in China, we have compiled a list of 5 things all foreign companies at least should know about transfer pricing: