Hwuason Lawyers Urges Companies to Heed Transfer Pricing Deadline
Liu Tianyong, Managing Partner of Hwuason Lawyers, the first specialist Chinese tax law firm, indicates that he expects a lot of companies in China to receive a nasty surprise come 31 December this for failure to take China's new transfer pricing rules seriously.
Beijing, China, November 05, 2009 --(PR.com)-- China’s first tax law firm has taken the unprecedented step of urging companies to pay attention to the 31 December 2009 transfer pricing deadline in order to avoid adverse penalties from the Chinese taxation authorities. Liu Tianyong, Managing Partner of Hwuason Lawyers, China’s first specialist tax law firm, has reiterated, in a series of speeches given over the last month, the need for companies to take a cautious approach to the new transfer pricing documentation requirements. The new documentation requirements have arisen out of two separate pieces of regulations issued by the tax authorities this year; the Implementation Measures for Special Tax Adjustments (Trial) and Circular No 363 entitled “Strengthening the Monitoring and Investigation of Cross-Border Related Party Transactions, Guo Shui Han [2009] No 363) (“Circular 363”)
“2009 is the first year for compliance with China’s new transfer pricing provisions and under the relevant transitional arrangements the deadline for submitting contemporaneous documentation in accordance with those provisions is 31 December 2009” Liu said. Not all companies are required to submit such documentation but it is important for all companies to ascertain “whether they fall within the category of companies that are compelled to submit documentation” noted Liu. Unfortunately, in Liu’s experiences, many companies do not fully understand the implications of the new requirements, or have not taken them seriously, which threatens to place these companies in a very precarious position come the end of the year. Many companies do not also appreciate the amount of time required to prepare the requisite documentation. “Some clients have told me that they will wait until December to start” comments Liu with a smile.
About Hwuason. Hwuason Lawyers was the first specialist tax law firm in China. A commitment to combining tax and legal services distinguishes Hwuason from other tax advisors. The firm offer clients an alternative to the 'big 4' accounting firms, both in terms of costs and the breadth of services provided, which includes M&A, tax controversy, cross-border and general tax.
For more information about Hwuason: www.hwuason.com
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“2009 is the first year for compliance with China’s new transfer pricing provisions and under the relevant transitional arrangements the deadline for submitting contemporaneous documentation in accordance with those provisions is 31 December 2009” Liu said. Not all companies are required to submit such documentation but it is important for all companies to ascertain “whether they fall within the category of companies that are compelled to submit documentation” noted Liu. Unfortunately, in Liu’s experiences, many companies do not fully understand the implications of the new requirements, or have not taken them seriously, which threatens to place these companies in a very precarious position come the end of the year. Many companies do not also appreciate the amount of time required to prepare the requisite documentation. “Some clients have told me that they will wait until December to start” comments Liu with a smile.
About Hwuason. Hwuason Lawyers was the first specialist tax law firm in China. A commitment to combining tax and legal services distinguishes Hwuason from other tax advisors. The firm offer clients an alternative to the 'big 4' accounting firms, both in terms of costs and the breadth of services provided, which includes M&A, tax controversy, cross-border and general tax.
For more information about Hwuason: www.hwuason.com
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Hwuason Lawyers
Matthew McKee
8610 58697282
www.hwuason.com
Matthew McKee
8610 58697282
www.hwuason.com
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