Transfer Pricing Adjustments and Differential Products

  • Jian LiEmail author
  • Alan Paisey


The Chinese company is a wholly foreign-owned enterprise, producing and selling chemical products. It obtained 8% of its raw materials from, and sold 60% of its finished products to, related foreign companies. All product orders were placed by the parent foreign company. In addition, the company paid 5% royalty fees to the parent company based on its sales revenue. Of that payment, 3% was for a technical fee, and 3% for a trademark fee, as depicted in Fig. 30.1.

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© The Author(s) 2019

Authors and Affiliations

  1. 1.Kunda Tax Consulting (Shanghai) LimitedShanghaiChina
  2. 2.ChristchurchNew Zealand

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