China’s new transfer pricing rules could be an opportunity to repatriate cash, said PricewaterhouseCoopers

Long-awaited rules on transfer pricing clarified recently by the State Administration of Taxation of China (SAT), could provide a timely opportunity for Midlands companies with business interests in China to repatriate cash efficiently.

Sue Rissbrook, tax partner and emerging markets expert, said: “The new requirements are quite onerous, though Midlands companies with business operations in China should find this clarification useful.

“Whilst requirements for compliance are now clear, there is the opportunity for businesses to use transfer pricing to achieve significant tax efficiency benefits, which could help them to repatriate cash more effectively at a critical time.”