On 4 December 2013, Jiaxing Daily reported that the Jiashan State Tax Bureau (JSTB) in Zhejiang province made a transfer pricing adjustment in domestic transactions between a local electronics manufacturing company and its parent company in Shanghai. The company is subject to the general enterprise income tax (EIT) rate of 25%, while the parent is a high- and new technology enterprise, which is subject to a reduced rate of 15%.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mail at: Zhang Danian (Shanghai) danian.zhang@bakermckenzie.com
