Replay the webinar (around 60 minutes)
With the development of the financial derivatives market in China and the globalization of the business for multinational companies, more and more Chinese subsidiaries participate in the global trading activities and are gradually being the important part of the global book. This is evidenced by the fact that many more Chinese subsidiaries engaged in commodity trading, energy, or other industrial sectors take an active role in the domestic commodity futures market and also cooperate with their associate companies worldwide with a view of hedging the potential financial risks or earning an arbitrage profit from the perspective of a consolidated book.
However, in light of the specific tax, transfer pricing, foreign exchange and other regulatory regimes in China, the common approach used in elsewhere of the world for the transactions may be problematic in China and bring about great exposures. In the last few years, many multinational companies with global trading practices have experienced repeated transfer pricing audits, which have resulted in large adjustments. The trend is that we will see more tax disputes stem from the transfer pricing issues regarding global trading practices in the future with the increasing knowledge and experience of tax authorities in China and therefore it is quite essential for you to keep your eyes on these issues.
To help you manage the potential risks in China as being involved in above mentioned activities/transactions, we are delighted to invite you to a web-seminar where we will provide you with an introduction of global trading models and their potentially problematic issues from a China perspective as well as how it will affect your business. In addition, we will also share our experience in dealing with these issues and the potential solutions.