Transfer pricing, broadly speaking, refers to the pricing of goods and services within a multi-divisional organisation, particularly in regard to cross-border transactions. One of the key tricky issues is allocating where the income should be earned and dealing with taxation. Globally, tax authorities increasingly are competing with each other for tax income from these deals.
ôThe New Income Tax Law passed this year by the NPC devotes an entire chapter to transfer pricing, signalling ChinaÆs focus on this matter,ö says Michael Olesnicky, who leads Baker McKenzieÆs tax practice in...
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