In the forum, we will explore the transfer pricing issues related to undertaking business restructurings in the People's Republic of China (PRC), and the development and maintenance of tax efficiency across the resulting supply chain.
With business becoming increasingly globalised, and amidst the waves of economic downturns, multinationals' have responded by restructuring their businesses and reorganizing their commercial activities in order to remain competitive. Some of the business restructuring, with functions, risks and assets being moved across different legal entities in different tax jurisdictions, can not only bring operational and commercial benefits, but also tax savings.
The formalisation of the 'global best-practice standard' by the OECD and the introduction of PRC guidelines in the area of business restructuring indicates that authorities will be more actively reviewing such restructures and highlights the importance going forward of ensuring adequate processes and documentation are in place for business restructurings. These changes are occurring in conjunction with an increasing focus on transfer pricing by the tax authorities within Hong Kong and across the region.
In this presentation we will:
• Outline the key aspects of the relevant OECD and PRC guidelines
• Discuss how these guidelines are related and what this may mean for current practice in the PRC
• Discuss what key factors, including valuation, should be considered when taxpayers are embarking on a business restructuring involving enterprises resident in the PRC
The forum will be led by KPMG's Global Transfer Pricing specialists who will provide their practical insights on this complex area. Participants will have the opportunity to ask questions at the conclusion of the formal presentation.