Related-party mapping
Identify related parties and map each type of intercompany transaction.
Who it is for
Who this service is for
- WFOEs that buy from or sell to group companies;
- entities that pay service fees or royalties to a parent;
- low-margin manufacturers and distributors; and
- companies preparing for a tax review, sale or closure.
Scope
What Hongda does
The final scope is agreed for each engagement.
Annual related-party disclosure
Prepare the related-party forms filed with the annual tax return.
Documentation
Prepare transfer pricing documentation where it is required.
Pricing policy review
Review whether intercompany pricing matches the functions and risks of the China entity.
Tax enquiries
Coordinate responses to tax bureau enquiries with qualified specialists.
Process
How it works
- 1
Map related parties and transactions.
- 2
Collect financial and contract data.
- 3
Review the pricing policy.
- 4
Prepare disclosures and documentation.
- 5
Review with you before filing.
- 6
Keep the documentation for future review.
FAQ
Frequently asked questions
Do we need transfer pricing documentation?
It depends on the type and size of your related-party transactions. This is confirmed against the rules in force.
Our China entity has low margins. Is that a problem?
Low margins can draw attention in a tax review. A pricing policy review checks whether the margin matches the entity's role.
Who prepares the report?
The responsible professional and the deliverable are agreed in the scope.
Related services
Talk to Hongda
Tell us what you need. We confirm the scope with you before any work starts.