HONG KONG SAR – Media OutReach – 14 September 2022 – After implementing Transfer Pricing Law for a few years, Hong Kong Inland Revenue Department is now ready to impose more Transfer Pricing Audit on Hong Kong Tax Payers and request taxpayers to prepare and submit Transfer Pricing Documentation. Cheng & Cheng Taxation Services Limited (“Cheng & Cheng Taxation”) will further reveal the importance of balancing interests of HKIRD in Transfer Pricing, with the below discussion areas:
- two common scenarios when the IRD carries out transfer pricing adjustment in Hong Kong;
- the penalties of lacking proper documentation; and
- the reasons of preparing benchmarking studies.