Managing Non-Trade Intercompany Transactions with Your Chinese Affiliates

Presenter(s):

• 

  Riccardo Benussi

  Partner
  

• 

  Shirley Chu

  Manager, Tax
  

• 

  Ann Sun

  Manager, Corporate Accounting Services
  

As international financial flows, labor exchanges and technology import have become more common in recent years, non-trade business transactions between the overseas headquarters and their Chinese affiliates are happening more frequently, ranging from the regular profit repatriation, royalty payments, service charges to new forms like remittance of overseas training/travel expenses. Without proper planning, such arrangement may bring you difficulties and challenges from China tax authorities and banks.

In this webinar, Riccardo Benussi, Head of European Business Development, Shirley Chu, manager from our transfer pricing team, and Ann Sun, manager from our corporate accounting team discussed the difficulties faced by multinational companies in terms of non-trade cross-border intercompany transactions and how they could be affected by China’s transfer pricing policy, along with the tax implications and payment procedure of some common forms of such transactions. Cindy Ying, operation manager of BNI China joined us as a special guest to share her experience in cross-border royalty payments and service charges.

Key points:

• Challenges of doing non-trade cross border intercompany transactions
• Updates on China’s transfer price policy
• Tax implications and payment procedure
• Case study: loan agreement, royalty payment, service charges, dividend etc.