China tax

Our China and Hong Kong tax specialists provide the full range of services required for a wide variety of local and international companies which operate in the Mainland and Hong Kong. Hong Kong, as a Special Administrative Region of China, is governed by separate tax laws from the Mainland. Our experts are able to advise on taxes / regulations for both jurisdictions.

Our services

Turnover tax planning

Our turnover tax team consists of experienced turnover tax specialists.

Value Added Tax, or VAT, is a tax charged on sales or import of goods and on repair and replacement services in China. Consumption tax is levied on luxury goods. From 1 May 2016, VAT replaced Business tax, to levy on taxable services in China or transfers of title of immovable and intangible properties in China.

The complexity of the turnover tax legislations is a growing concern for businesses. Management of turnover taxes in China is a key issue.

Our specialists help you to maximize savings in finding an optimal turnover position for current or planned business activities. They can assist you with turnover tax planning and compliance.

Transfer pricing services

Transfer pricing refers to the inter-company pricing arrangements between related parties on the transfer of goods, services or intangibles. Our transfer pricing experts provide services on supply chain management, drafting transfer pricing documentation and achieving Advance Pricing Agreement (APA).

With global trade growing rapidly, multinational companies are frequently confronted with complex issues associated with intercompany pricing. Transfer pricing audits are one of the top priorities for the China tax authorities. China tax authorities are imposing new contemporaneous documentation requirements on companies in relation to their transfer pricing arrangements, and failure to comply can result in significant penalties. As many countries have specific transfer pricing legislations, compliance with the different requirements of various tax jurisdictions is a complicated and time-consuming task. Transfer pricing is often listed as the most important international tax issue faced by multinational companies. You may need:

• Advice on transfer pricing documentation requirements in the Mainland China, Hong Kong and / or other jurisdictions.
• Assistance in responding to the China tax authorities’ transfer pricing audit/enquiry.
• Advice on how to manage your China transfer pricing policies and procedures.

We have a strong international network of dedicated transfer pricing professionals. Our transfer pricing team will help you develop China transfer pricing and to coordinate global transfer pricing. Whether your intercompany pricing issues involve the sale of goods, the provision of services, the transfer of intangible property or cross-border financing, Mazars in Hong Kong’ experienced transfer pricing professionals can help you with a full range of transfer pricing services. Our services include:

• Planning
• Documentation
• Dispute resolution
• Risk and opportunity assessments, etc.

Mazars in Hong Kong provides cost-effective transfer pricing assistance based on an understanding of your business. Through Mazars’ own offices in over 90 countries and our membership in Praxity, a global alliance of independent firms, we are able to draw upon transfer pricing professionals worldwide to serve the dynamic needs of multinational clients.