First of all, what is transfer pricing? Transfer Pricing is the price to which one headquarter transfers products or services to its associated enterprises located in different countries. Transfer prices are applied to multinational groups to evaluate the performance of their different members (branches and subsidiaries).

f you work in China, I suggest having a clear picture on how the IIT works on your salary. Normally, the employer directly withholds the rate proportioned to your salary every month. Even if it’s automatic, I’d rather be sure that the portion of money you don’t see every month is correct.

If you are a foreigner and you are planning to set up a company in China, here are the 10 steps to open a foreign-invested company in China.

In China, the VAT system is equally applied to foreign and local companies working in the territory. Unfortunately, as foreigners, we don’t enjoy any benefit related to VAT rates. But, with the appropriate support a foreign company might gain some deductions.

The company registration period, including the initial investment, lasts from twelve weeks to five months (excluding registration of companies in encouraged and limited sectors).

As Partner of S.J. Grand Financial & Tax Advisory, in China since the early 90’s, I can recommend gathering all the possible insights on corporate and individual taxation in China. Comply with rules, avoid illegal practices for the both the mother company and branch’s sake.