{"product_id":"asia-pacific-transfer-pricing-handbook-isbn-9781118359372","title":"Asia-Pacific Transfer Pricing Handbook","description":"\u003cb\u003eAn overarching look at transfer pricing regimes in Asia-Pacific countries and what they mean for foreign businesses\u003c\/b\u003e \u003cp\u003eA comprehensive guide for companies doing business globally, \u003ci\u003eAsia-Pacific Transfer Pricing Handbook\u003c\/i\u003e explains the policies and practices that Asia-Pacific countries employ with regards to taxing foreign businesses. The only book that analyzes and guides companies through the often complex transfer pricing rules in place in Asian-Pacific nations, the book explains how authorities in fifteen countries, including ASEAN, India, New Zealand, Japan, and South Korea, tax any company doing business within their borders.\u003c\/p\u003e \u003cp\u003eHelping foreign companies to properly price their goods and services for global markets, providing defenses for transfer pricing audits, explaining standards for creating comparables that multijurisdictional tax administrations will accept, explaining documentation requirements and timing issues, and creating awareness about inadvertently becoming a permanent establishment, \u003ci\u003eAsia-Pacific Transfer Pricing Handbook\u003c\/i\u003e is an essential resource for doing business abroad.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides comprehensive, accessible information on transfer pricing in Asia-Pacific countries\u003c\/li\u003e \u003cli\u003eCovers fifteen Asia-Pacific countries, including all ASEAN countries, giving readers unparalleled exposure to the different transfer pricing arrangements across the region\u003c\/li\u003e \u003cli\u003eExplains how companies doing business abroad should price their goods and services for global markets to remain in accordance with the law\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eA complete and comprehensive guide to transfer pricing and its implications for firms and accountants operating in the Asia-Pacific region, \u003ci\u003eAsia-Pacific Transfer Pricing Handbook\u003c\/i\u003e explains everything foreign companies need to know about doing business abroad.\u003c\/p\u003e  \u003cp\u003ePreface xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART ONE: COUNTRY-BY-COUNTRY ANALYSIS 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePart One: Country-by-Country Analysis 3\u003c\/p\u003e \u003cp\u003ePart Two: Advanced Applications 4\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Australia’s Risk Assessment Transfer Pricing Approach 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroductory Issues 8\u003c\/p\u003e \u003cp\u003eTransfer Pricing Reviews 8\u003c\/p\u003e \u003cp\u003eDocumentation Requirements 10\u003c\/p\u003e \u003cp\u003ePreparation of the Documentation File 11\u003c\/p\u003e \u003cp\u003eApplying the Arm’s Length Principle 13\u003c\/p\u003e \u003cp\u003eSimplified Approach to Doing a Benchmarking Study 13\u003c\/p\u003e \u003cp\u003eFour Steps for Testing International Transfer Prices 14\u003c\/p\u003e \u003cp\u003eDecision Tree 16\u003c\/p\u003e \u003cp\u003eHow the ATO Scores Risk 16\u003c\/p\u003e \u003cp\u003eScoring the Three Levels 17\u003c\/p\u003e \u003cp\u003eScore Graph 18\u003c\/p\u003e \u003cp\u003eOutcome of Transfer Pricing Review or Audit 19\u003c\/p\u003e \u003cp\u003eAudits Taking Place in Low-Risk Situations 20\u003c\/p\u003e \u003cp\u003eTransfer Pricing Review Process 20\u003c\/p\u003e \u003cp\u003eCategorizing the Results of the Transfer Pricing Review 21\u003c\/p\u003e \u003cp\u003eHow the Australian Transfer Pricing Audit Procedure Works 22\u003c\/p\u003e \u003cp\u003eAustralia’s Four-Step Process for Businesses 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Profit Attribution for a Dependent\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAgent’s Permanent Establishment in Australia 25\u003c\/p\u003e \u003cp\u003ePermanent Establishment Concepts in Australia 26\u003c\/p\u003e \u003cp\u003eProfit Attribution Concepts in Australia 26\u003c\/p\u003e \u003cp\u003eThe ATO’s Operational Approach 26\u003c\/p\u003e \u003cp\u003eDetermining Functional Analysis for a Permanent Establishment 27\u003c\/p\u003e \u003cp\u003eComparative Analysis for the Permanent Establishment 29\u003c\/p\u003e \u003cp\u003eApplication of the Resale Price Method 31\u003c\/p\u003e \u003cp\u003eApplication of the Cost Plus Method 31\u003c\/p\u003e \u003cp\u003eUsing a Transactional Net Margin Method 32\u003c\/p\u003e \u003cp\u003eUsing a Profit Split Method 32\u003c\/p\u003e \u003cp\u003eToll Manufacturers 34\u003c\/p\u003e \u003cp\u003eFour Examples 35\u003c\/p\u003e \u003cp\u003eNotes 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Australia’s Advance Pricing Arrangement Program 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePre-Formal APA Discussions 50\u003c\/p\u003e \u003cp\u003eAPA Processing Times 51\u003c\/p\u003e \u003cp\u003eUnilateral and Bilateral APAs 52\u003c\/p\u003e \u003cp\u003eThe ATO’s APA Work in Process 52\u003c\/p\u003e \u003cp\u003eAPA Issues and Methods 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 China Implements Transfer Pricing Procedures 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview 55\u003c\/p\u003e \u003cp\u003eRegulations 56\u003c\/p\u003e \u003cp\u003eChapter 1: General Principles 56\u003c\/p\u003e \u003cp\u003eChapter 2: Reporting and Filing of Related Party Transactions 59\u003c\/p\u003e \u003cp\u003eChapter 3: Administration of Contemporaneous Documentation 62\u003c\/p\u003e \u003cp\u003eChapter 4: Transfer Pricing Methods 66\u003c\/p\u003e \u003cp\u003eChapter 5: Transfer Pricing Audits and Adjustments 71\u003c\/p\u003e \u003cp\u003eChapter 6: Administrative Guidance Concerning Advance Pricing Arrangements 78\u003c\/p\u003e \u003cp\u003eChapter 7: Administrative Guidance Concerning Cost Sharing Agreements 87\u003c\/p\u003e \u003cp\u003eChapter 8: Administrative Guidelines Concerning Controlled Foreign Corporations 91\u003c\/p\u003e \u003cp\u003eChapter 9: Administrative Guidance Concerning Thin Capitalization 93\u003c\/p\u003e \u003cp\u003eChapter 10: Administrative Guidance Concerning General Anti-Avoidance 96\u003c\/p\u003e \u003cp\u003eChapter 11: Corresponding Adjustments and International Negotiations 98\u003c\/p\u003e \u003cp\u003eChapter 12: Legal Responsibility 99\u003c\/p\u003e \u003cp\u003eChapter 13: Supplementary Provisions 101\u003c\/p\u003e \u003cp\u003eNotes 102\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Reporting Related Party Transactions in China 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eForm 1—Related Party Relationships 106\u003c\/p\u003e \u003cp\u003eForm 2—Summary of Related Party Transactions 109\u003c\/p\u003e \u003cp\u003eForm 3—Purchases and Sales 111\u003c\/p\u003e \u003cp\u003eForm 4—Services Form 112\u003c\/p\u003e \u003cp\u003eForm 5—Intangible Assets 113\u003c\/p\u003e \u003cp\u003eForm 6—Fixed Assets 113\u003c\/p\u003e \u003cp\u003eForm 7—Financing 114\u003c\/p\u003e \u003cp\u003eForm 8—Outbound Investment 115\u003c\/p\u003e \u003cp\u003eForm 9—Outbound Payments 118\u003c\/p\u003e \u003cp\u003eNotes 119\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Hong Kong Advance Ruling Cases: Taxability of Profits 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAdvance Ruling Process 121\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 4 122\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 8 123\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 9 125\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 10 126\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 11 127\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 12 128\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 13 130\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 16 132\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 19 133\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 21 134\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 23 135\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 26 136\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 30 137\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 34 138\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 35 139\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 36 140\u003c\/p\u003e \u003cp\u003eAdvance Ruling Case No. 37 141\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Hong Kong Transfer Pricing Guidelines 143\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDouble Tax Agreements 143\u003c\/p\u003e \u003cp\u003eArm’s Length Principle 143\u003c\/p\u003e \u003cp\u003eAssociated Enterprises 145\u003c\/p\u003e \u003cp\u003eAppropriate Adjustments 146\u003c\/p\u003e \u003cp\u003eInland Revenue Ordinance and Case Law 147\u003c\/p\u003e \u003cp\u003ePermanent Establishment Considerations 150\u003c\/p\u003e \u003cp\u003eApplying the Arm’s Length Principle 151\u003c\/p\u003e \u003cp\u003eFour Steps 153\u003c\/p\u003e \u003cp\u003eFunctional Analysis 153\u003c\/p\u003e \u003cp\u003eComparability Analysis 154\u003c\/p\u003e \u003cp\u003eDetermining Comparability 155\u003c\/p\u003e \u003cp\u003eFunctions, Assets, and Risks 155\u003c\/p\u003e \u003cp\u003eContract Terms 157\u003c\/p\u003e \u003cp\u003eEconomic and Marketing Circumstances 158\u003c\/p\u003e \u003cp\u003eBusiness Strategies 158\u003c\/p\u003e \u003cp\u003eGlobal Price Lists 159\u003c\/p\u003e \u003cp\u003eEstablishing the Reliability of the Data 160\u003c\/p\u003e \u003cp\u003eTransfer Pricing Methodologies 160\u003c\/p\u003e \u003cp\u003eSources of Profi ts and Income 162\u003c\/p\u003e \u003cp\u003eAbusive Tax Schemes 163\u003c\/p\u003e \u003cp\u003eTransfer Pricing Schemes 164\u003c\/p\u003e \u003cp\u003eTransfer Pricing Documentation 166\u003c\/p\u003e \u003cp\u003eIntragroup Services Arrangements 169\u003c\/p\u003e \u003cp\u003eDeduction of Expenditures Paid for Intragroup Service 170\u003c\/p\u003e \u003cp\u003eDetermining the Amount of Intragroup Charges 171\u003c\/p\u003e \u003cp\u003eServices Provided by a Permanent Establishment 173\u003c\/p\u003e \u003cp\u003eNotes 174\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Hong Kong Challenges Abusive Tax Schemes 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMacroeconomic Issues 176\u003c\/p\u003e \u003cp\u003eAbusive Tax Schemes 177\u003c\/p\u003e \u003cp\u003eTransfer Pricing Schemes 178\u003c\/p\u003e \u003cp\u003eLack of “Economically Significant Functions” 179\u003c\/p\u003e \u003cp\u003eHow the Hong Kong Government Combats Abusive Tax Schemes 179\u003c\/p\u003e \u003cp\u003eExtreme Forms of Tax Abuse 180\u003c\/p\u003e \u003cp\u003eDistinguishing Tax Avoidance from Tax Evasion 180\u003c\/p\u003e \u003cp\u003eHow the Reinvoicing Structure Operates 181\u003c\/p\u003e \u003cp\u003eShifting Intangible Property: The Tax Perspective 182\u003c\/p\u003e \u003cp\u003eNotes 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Winning Hong Kong’s Landmark Transfer Pricing Case 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNgai Lik Litigation 185\u003c\/p\u003e \u003cp\u003eHong Kong’s Advance Ruling Determinations 186\u003c\/p\u003e \u003cp\u003eHong Kong Issues Transfer Pricing Guidelines 186\u003c\/p\u003e \u003cp\u003eStatutory Provisions 187\u003c\/p\u003e \u003cp\u003eDetermination by the Court of Final Appeal 188\u003c\/p\u003e \u003cp\u003eThe Commissioner’s Determination 188\u003c\/p\u003e \u003cp\u003eDetermination by the Board of Review 189\u003c\/p\u003e \u003cp\u003eDetermination by the Court of First Instance 189\u003c\/p\u003e \u003cp\u003eDetermination by the Court of Appeal 190\u003c\/p\u003e \u003cp\u003eThe Case before the Court of Final Appeal 191\u003c\/p\u003e \u003cp\u003eDeficiencies in the Scheme as to Additional Annual Bulk Discounts Received by Din Wai Electronics Limited 192\u003c\/p\u003e \u003cp\u003eDeficiencies in the Scheme as to Manufacturing Profits 193\u003c\/p\u003e \u003cp\u003eDeficiencies in the Scheme as to the Relevant Years of Assessment 196\u003c\/p\u003e \u003cp\u003eAre the Scheme and the Tax Benefit Still Viable Bases for Section 61A Assessments? 196\u003c\/p\u003e \u003cp\u003eIs There a “Tax Benefi t” within the Meaning of Section 61A? 197\u003c\/p\u003e \u003cp\u003eThe Narrower Scheme and the Narrower Tax Benefit 197\u003c\/p\u003e \u003cp\u003eDominant Purpose of the Narrower Scheme 198\u003c\/p\u003e \u003cp\u003eBoard of Review’s Approach 199\u003c\/p\u003e \u003cp\u003eRibeiro’s Dominant Purpose of the Narrower Scheme 200\u003c\/p\u003e \u003cp\u003eCommissioner’s Assessment Power 202\u003c\/p\u003e \u003cp\u003eCommissioner’s Exercise of the Section 61A(2) Power 202\u003c\/p\u003e \u003cp\u003eBoard’s Approach to the Exercise of the Section 61A(2) Power 203\u003c\/p\u003e \u003cp\u003eDisposal of the Appeal 203\u003c\/p\u003e \u003cp\u003eNotes 204\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Transfer Pricing Litigation in India 205\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 205\u003c\/p\u003e \u003cp\u003eTransfer Pricing Chronology and Administration 206\u003c\/p\u003e \u003cp\u003eRelated Parties 207\u003c\/p\u003e \u003cp\u003eTransfer Pricing Method Selection in India 208\u003c\/p\u003e \u003cp\u003eContemporaneous Documentation in India 209\u003c\/p\u003e \u003cp\u003eAudit Procedures 210\u003c\/p\u003e \u003cp\u003ePenalties 211\u003c\/p\u003e \u003cp\u003eAppellate Procedures 212\u003c\/p\u003e \u003cp\u003eTransfer Pricing Litigation 213\u003c\/p\u003e \u003cp\u003eVodafone: Hutchison Essar Acquisition 215\u003c\/p\u003e \u003cp\u003eNotes 215\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 PE Issues Impact Indian Transfer Pricing 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 218\u003c\/p\u003e \u003cp\u003eNexus, Effectively Connected Status, and Permanent Establishment 218\u003c\/p\u003e \u003cp\u003eFour Fact-Based Permanent Establishment Inquiries 219\u003c\/p\u003e \u003cp\u003eImpact of the Morgan Stanley Case 220\u003c\/p\u003e \u003cp\u003ePermanent Establishment Transfer Pricing Litigation in India 220\u003c\/p\u003e \u003cp\u003eGalileo 221\u003c\/p\u003e \u003cp\u003eHotel Scopevista 222\u003c\/p\u003e \u003cp\u003eWorleyParsons 223\u003c\/p\u003e \u003cp\u003eKnoWerx Education 223\u003c\/p\u003e \u003cp\u003eICICI Bank 224\u003c\/p\u003e \u003cp\u003eZimmer AG 225\u003c\/p\u003e \u003cp\u003eIntergrafica 226\u003c\/p\u003e \u003cp\u003eRanbaxy Laboratories 226\u003c\/p\u003e \u003cp\u003eDevelopment Consultants 227\u003c\/p\u003e \u003cp\u003ePerfitti 228\u003c\/p\u003e \u003cp\u003eData Software Research 229\u003c\/p\u003e \u003cp\u003eSNC Lavalin \/Acres Inc. 229\u003c\/p\u003e \u003cp\u003eAirport Authority of India 230\u003c\/p\u003e \u003cp\u003eRadha Rani Holdings 231\u003c\/p\u003e \u003cp\u003eMashreq Bank PSC 232\u003c\/p\u003e \u003cp\u003eMentor Graphics (Noida) Pvt. Ltd. 232\u003c\/p\u003e \u003cp\u003eMillennium Infocom Technologies Ltd. 233\u003c\/p\u003e \u003cp\u003eVan Oord ACZ India 233\u003c\/p\u003e \u003cp\u003eTokyo Marine \u0026amp; Fire Insurance Co. Ltd. 234\u003c\/p\u003e \u003cp\u003eWestern Union Money Transfer 235\u003c\/p\u003e \u003cp\u003eCargo Communities Network 235\u003c\/p\u003e \u003cp\u003eHyundai Heavy Industries 235\u003c\/p\u003e \u003cp\u003eE. Gain Pvt. Ltd. 236\u003c\/p\u003e \u003cp\u003eInfosys International Activities in New York State 236\u003c\/p\u003e \u003cp\u003eChapter 13 Taxation of Travel Services in India 239\u003c\/p\u003e \u003cp\u003eSabre 240\u003c\/p\u003e \u003cp\u003eGalileo 243\u003c\/p\u003e \u003cp\u003eInstalled Hardwire 245\u003c\/p\u003e \u003cp\u003eNotes 245\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Transfer Pricing in Indonesia 247\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistorical Background 247\u003c\/p\u003e \u003cp\u003eTransfer Pricing Considerations 248\u003c\/p\u003e \u003cp\u003eSpecial Attachment 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Japan’s Directive on Transfer Pricing Operations 251\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 251\u003c\/p\u003e \u003cp\u003eRegulations and the Examples—How They Differ 252\u003c\/p\u003e \u003cp\u003eOperation of the Japanese Transfer Pricing Administrative Guidelines 253\u003c\/p\u003e \u003cp\u003eChapter 1: Defi nitions and Basic Policies 253\u003c\/p\u003e \u003cp\u003eChapter 2: Examination 254\u003c\/p\u003e \u003cp\u003eChapter 3: Points to Note in Calculating Arm’s Length Prices 269\u003c\/p\u003e \u003cp\u003eChapter 4: Treatment of Foreign Transferred Income 272\u003c\/p\u003e \u003cp\u003eChapter 5: Advance Pricing Arrangements 274\u003c\/p\u003e \u003cp\u003eNotes 288\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Selecting the Arm’s Length Price in Japan 289\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 290\u003c\/p\u003e \u003cp\u003eDemonstrating the Selection of Arm’s Length Price 290\u003c\/p\u003e \u003cp\u003eSelection of the Method of Calculation of Arm’s Length Price 290\u003c\/p\u003e \u003cp\u003eCase 1: Use of the Comparable Uncontrolled Price Method 291\u003c\/p\u003e \u003cp\u003eCase 2: Use of the Resale Price Method 299\u003c\/p\u003e \u003cp\u003eCase 3: Use of the Cost Plus Method 301\u003c\/p\u003e \u003cp\u003eCase 4: Methods Consistent with the Comparable Uncontrolled Price Method 303\u003c\/p\u003e \u003cp\u003eCase 5: Methods Consistent with the Cost Plus Method 307\u003c\/p\u003e \u003cp\u003eCase 6: Transactional Net Margin Method 311\u003c\/p\u003e \u003cp\u003eCase 7: Contribution Profi t Split Method 316\u003c\/p\u003e \u003cp\u003eCase 8: Residual Profi t Split Method 320\u003c\/p\u003e \u003cp\u003eCase 9: Adjustment for Differences 323\u003c\/p\u003e \u003cp\u003eNotes 325\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Applying Japanese Intangible Transfer Pricing Methods 327\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCase 10: Intangibles Created by R\u0026amp;D and Marketing Activities 328\u003c\/p\u003e \u003cp\u003eCase 11: Distribution Channels and Quality Control Know-How 333\u003c\/p\u003e \u003cp\u003eCase 12: Know-How Accumulation through Human Resource Business Activities 335\u003c\/p\u003e \u003cp\u003eCase 13: Contributions to Create, Maintain, and Develop Intangible Properties 339\u003c\/p\u003e \u003cp\u003eCase 14: A Company Bearing only the Cost of Creation of the Intangible Properties 341\u003c\/p\u003e \u003cp\u003eCase 15: Intangible Properties for Employees on Loan 343\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Japanese Profi t Split Transfer Pricing Methods 345\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCase 16: Applying the Profi t Split Method to a Series of Foreign-Related Transactions 346\u003c\/p\u003e \u003cp\u003eCase 17: Excluding Transactions from the Profit Split Method 349Contents  xiii\u003c\/p\u003e \u003cp\u003eCase 18: Calculation of the Profi t to Be Split 352\u003c\/p\u003e \u003cp\u003eCase 19: Differences in Labor Costs Impact the Residual Profit Split Method 358\u003c\/p\u003e \u003cp\u003eCase 20: Treatment of Market Fluctuations 361\u003c\/p\u003e \u003cp\u003eCase 21: Calculation of Basic Profi t 364\u003c\/p\u003e \u003cp\u003eCase 22: Factors for Splitting the Residual Profit 367\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Japanese Guidelines Address Diverse Transfer Pricing Issues 373\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCase 23: Determining Whether Services Provide Commercial Value 373\u003c\/p\u003e \u003cp\u003eCase 24: Multiple-Year Considerations 377\u003c\/p\u003e \u003cp\u003eCase 25: Establishing the Target Profit Margin 380\u003c\/p\u003e \u003cp\u003eCase 26: Critical Assumptions 384\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Malaysia Advance Ruling Guidelines 387\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGeneral Facets of the Advance Ruling Procedure in Malaysia 388\u003c\/p\u003e \u003cp\u003eBinding Nature of an Advance Ruling 388\u003c\/p\u003e \u003cp\u003eScope of the Advance Ruling Request 389\u003c\/p\u003e \u003cp\u003eCircumstances in Which Malaysia Tax Authorities Will Not Issue an Advance Ruling 390\u003c\/p\u003e \u003cp\u003eCircumstances in Which the DGIR Can Decline to Issue an Advance Ruling 391\u003c\/p\u003e \u003cp\u003eNotice Requirements 392\u003c\/p\u003e \u003cp\u003eAdvance Ruling Application Procedure 392\u003c\/p\u003e \u003cp\u003eAdvance Ruling Application Form 393\u003c\/p\u003e \u003cp\u003eInformation Request Requirement 394\u003c\/p\u003e \u003cp\u003eIssuance of the Advance Ruling 394\u003c\/p\u003e \u003cp\u003eAdvance Ruling Finality and Disclosure 395\u003c\/p\u003e \u003cp\u003eThe DGIR Can Withdraw the Advance Ruling 396\u003c\/p\u003e \u003cp\u003eSituations in Which the Advance Ruling Ceases to Apply 396\u003c\/p\u003e \u003cp\u003eFee Structure 397\u003c\/p\u003e \u003cp\u003eInternal Procedure 397\u003c\/p\u003e \u003cp\u003eNotes 397\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21 Malaysia Transfer Pricing Guidelines 401\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroductory Provisions 401\u003c\/p\u003e \u003cp\u003eMalaysian Transfer Pricing Procedure 402\u003c\/p\u003e \u003cp\u003eApplication of the Arm’s Length Principle 403\u003c\/p\u003e \u003cp\u003eMalaysia’s Transfer Pricing Regime 403\u003c\/p\u003e \u003cp\u003eComparability and Transfer Pricing 404\u003c\/p\u003e \u003cp\u003eTransfer Pricing Alternatives 407\u003c\/p\u003e \u003cp\u003eComparable Uncontrolled Price Transfer Pricing Method 407\u003c\/p\u003e \u003cp\u003eResale Price Transfer Pricing Method 409\u003c\/p\u003e \u003cp\u003eCost Plus Transfer Pricing Method 411\u003c\/p\u003e \u003cp\u003eAdditional Transfer Pricing Methods 413\u003c\/p\u003e \u003cp\u003eProfit Split Transfer Pricing Method 414\u003c\/p\u003e \u003cp\u003eResidual Analysis Example 415\u003c\/p\u003e \u003cp\u003eTransactional Net Margin Method 418\u003c\/p\u003e \u003cp\u003eIntangible Property 419\u003c\/p\u003e \u003cp\u003eTransfer Pricing Services Regulations 420\u003c\/p\u003e \u003cp\u003eDocumentation 421\u003c\/p\u003e \u003cp\u003eMalaysia Issues Advance Rulings Guidelines 423\u003c\/p\u003e \u003cp\u003eGeneral Facts about of the Advance Ruling Procedure in Malaysia 423\u003c\/p\u003e \u003cp\u003eBinding Nature of an Advance Ruling 424\u003c\/p\u003e \u003cp\u003eScope of the Advance Ruling Request 425\u003c\/p\u003e \u003cp\u003eAdvance Ruling Application Procedure 427\u003c\/p\u003e \u003cp\u003eAdvance Ruling Application Form 428\u003c\/p\u003e \u003cp\u003eInformation Request Requirement 429\u003c\/p\u003e \u003cp\u003eIssuance of the Advance Ruling 429\u003c\/p\u003e \u003cp\u003eAdvance Ruling Finality and Disclosure 431\u003c\/p\u003e \u003cp\u003eThe DGIR Can Withdraw the Advance Ruling 431\u003c\/p\u003e \u003cp\u003eSituations in Which the Advance Ruling Ceases to Apply 432\u003c\/p\u003e \u003cp\u003eFee Structure 432\u003c\/p\u003e \u003cp\u003eInternal Procedure 433\u003c\/p\u003e \u003cp\u003eNotes 433\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 New Zealand Transfer Pricing Developments 439\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNew Zealand Transfer Pricing Guidelines 440\u003c\/p\u003e \u003cp\u003eInitial Developments 440\u003c\/p\u003e \u003cp\u003eArm’s Length Principle and the Pricing Methods 441\u003c\/p\u003e \u003cp\u003eBasics of the Transfer of Intangible Property 442\u003c\/p\u003e \u003cp\u003eProfit Split Method and the Joint Ownership of Intangible Property 443\u003c\/p\u003e \u003cp\u003eProfit Split Method 444\u003c\/p\u003e \u003cp\u003eResidual Profit Split Analysis 444\u003c\/p\u003e \u003cp\u003eTransactional Net Margin Method 445\u003c\/p\u003e \u003cp\u003eMarket Penetration Techniques 445\u003c\/p\u003e \u003cp\u003eAustralia’s Four-Step Process to Ascertain the Arm’s Length Approach 446\u003c\/p\u003e \u003cp\u003eDocumentation 446\u003c\/p\u003e \u003cp\u003eDocumentation and the Burden of Proof Rule 447\u003c\/p\u003e \u003cp\u003eInland Revenue Seeks to Ascertain the Risks to the Revenue 447\u003c\/p\u003e \u003cp\u003eRetention of Records 448\u003c\/p\u003e \u003cp\u003eTransfer Pricing in Countries without a Double Tax Agreement 449\u003c\/p\u003e \u003cp\u003eIntangible Property Audits 450\u003c\/p\u003e \u003cp\u003eTrade Intangibles and Marketing Intangibles 450\u003c\/p\u003e \u003cp\u003eAscertaining the Arm’s Length Amount for Intangible Property 451\u003c\/p\u003e \u003cp\u003eAscertaining the Ownership of Intangible Property 451\u003c\/p\u003e \u003cp\u003eFactors in Ascertaining the Nature of Intangible Property 452\u003c\/p\u003e \u003cp\u003eTerms and Conditions of the Intangible Property Transfer 453\u003c\/p\u003e \u003cp\u003eValuing Intangible Property 454\u003c\/p\u003e \u003cp\u003eNon-Owner’s Marketing Activities 454\u003c\/p\u003e \u003cp\u003eApplying the Profi t Split Method to Intangible Property 455\u003c\/p\u003e \u003cp\u003eIntangible Property Planning 456\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 23 Philippine Transfer Pricing Regulations 457\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScope of the Philippine Provisions 458\u003c\/p\u003e \u003cp\u003ePhilippine-Specific Provisions 458\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 24 Singapore Implements Advance\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePricing Arrangement Procedure 461\u003c\/p\u003e \u003cp\u003eObjectives of the Supplementary Circular 462\u003c\/p\u003e \u003cp\u003eWhat the Supplementary Circular Provides 462\u003c\/p\u003e \u003cp\u003eMinimum Information Requirements 462\u003c\/p\u003e \u003cp\u003eConsiderations for Accepting the APA 463\u003c\/p\u003e \u003cp\u003ePre-Filing APA Process 464\u003c\/p\u003e \u003cp\u003eFormal APA Submission Procedures 466\u003c\/p\u003e \u003cp\u003eAPA Review and Negotiations: Considerations and Requirements 467\u003c\/p\u003e \u003cp\u003eAPA Roll-Back 468\u003c\/p\u003e \u003cp\u003eDiscontinuation of the APA Process 469\u003c\/p\u003e \u003cp\u003eNonsubmission of the APA Application 469\u003c\/p\u003e \u003cp\u003eInsuffi cient Level of Support during the APA Process 470\u003c\/p\u003e \u003cp\u003eAbsence of Communication 470\u003c\/p\u003e \u003cp\u003eEffective Date 471\u003c\/p\u003e \u003cp\u003eNotes 471\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 25 Singapore Transfer Pricing Consultation Process 475\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 475\u003c\/p\u003e \u003cp\u003eObjectives of the Transfer Pricing Consultation 476\u003c\/p\u003e \u003cp\u003eIssuance of the Transfer Pricing Questionnaire 476\u003c\/p\u003e \u003cp\u003eTransfer Pricing Consultation 477\u003c\/p\u003e \u003cp\u003eTransfer Pricing Questionnaire 478\u003c\/p\u003e \u003cp\u003eNotes 480\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 26 Singapore Transfer Pricing Guidelines 481\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey Concepts and Arm’s Length Principles 482\u003c\/p\u003e \u003cp\u003eThree-Step Approach 483\u003c\/p\u003e \u003cp\u003eComparison of Economically Signifi cant Functions 483\u003c\/p\u003e \u003cp\u003eComparable Uncontrolled Price Method 484\u003c\/p\u003e \u003cp\u003eTransfer Pricing Method Selection 484\u003c\/p\u003e \u003cp\u003eTransfer Pricing Documentation 488\u003c\/p\u003e \u003cp\u003eMutual Agreement Procedures 490\u003c\/p\u003e \u003cp\u003eAdvance Pricing Agreements 491\u003c\/p\u003e \u003cp\u003eComments 491\u003c\/p\u003e \u003cp\u003eNotes 491\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 27 Singapore Transfer Pricing Guidelines for Related Party Loans and Services 493\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransfer Pricing Guidelines for Related Party Loans 494\u003c\/p\u003e \u003cp\u003eTwo Loan Categories 494\u003c\/p\u003e \u003cp\u003eFacts and Circumstances to Determine Comparability Analysis 496\u003c\/p\u003e \u003cp\u003eTransfer Pricing Guidelines for Related Party Services 497\u003c\/p\u003e \u003cp\u003eDirect Charging versus Indirect Charging of Services 499\u003c\/p\u003e \u003cp\u003eAscertaining the Arm’s Length Fee 500\u003c\/p\u003e \u003cp\u003eRoutine Services and the 5% Markup 500\u003c\/p\u003e \u003cp\u003eCost Pooling Contracts 503\u003c\/p\u003e \u003cp\u003eStrict Cost Pass-through 504\u003c\/p\u003e \u003cp\u003eDocumentation 505\u003c\/p\u003e \u003cp\u003eNotes 506\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 28 South Korea Transfer Pricing 507\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 507\u003c\/p\u003e \u003cp\u003eRelated Party Transfer Pricing Relationships in Korea 508\u003c\/p\u003e \u003cp\u003eComputation of Indirect Ownership 509\u003c\/p\u003e \u003cp\u003eEconomic Interest and Control 509\u003c\/p\u003e \u003cp\u003eTransfer Pricing Method Alternatives 510\u003c\/p\u003e \u003cp\u003eInformation Requests and Documents 512\u003c\/p\u003e \u003cp\u003eTransfer Pricing Audits 514\u003c\/p\u003e \u003cp\u003ePermanent Establishment, Competent Authority, and Advance Pricing Agreements 515\u003c\/p\u003e \u003cp\u003eThin Capitalization and Tax Havens 515\u003c\/p\u003e \u003cp\u003eApplying the “Most Reasonable Method” Standard to Determine Arm’s Length Price 516\u003c\/p\u003e \u003cp\u003eUnderpayments and Overpayments 517\u003c\/p\u003e \u003cp\u003eSelecting Transfer Pricing Methods 517\u003c\/p\u003e \u003cp\u003eReporting Methods for Determining Arm’s Length Price 518\u003c\/p\u003e \u003cp\u003eAdvance Pricing Arrangements 518\u003c\/p\u003e \u003cp\u003eSanctions Imposed on Failure to Comply with the Data Request 520\u003c\/p\u003e \u003cp\u003ePenalties 520\u003c\/p\u003e \u003cp\u003eThin Capitalization Rules 521\u003c\/p\u003e \u003cp\u003eDebt under an Arm’s Length Situation 522\u003c\/p\u003e \u003cp\u003eAnti–Tax Haven Rules 522\u003c\/p\u003e \u003cp\u003eScope of the “Tax Haven” Jurisdiction 523\u003c\/p\u003e \u003cp\u003eComputation of the Reserved Income Distributed Amount 524\u003c\/p\u003e \u003cp\u003eGift Tax on Property Located Outside Korea 524\u003c\/p\u003e \u003cp\u003eMutual Agreement Procedure 525\u003c\/p\u003e \u003cp\u003eInternational Tax Cooperation 525\u003c\/p\u003e \u003cp\u003eNote 526\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 29 Sri Lanka Transfer Pricing 527\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAssociated Undertakings 528\u003c\/p\u003e \u003cp\u003eArm’s Length Price 528\u003c\/p\u003e \u003cp\u003eDocumentation 529\u003c\/p\u003e \u003cp\u003eThreshold for Applying Sri Lanka Transfer Pricing 529\u003c\/p\u003e \u003cp\u003eAdvance Pricing Agreements 530\u003c\/p\u003e \u003cp\u003eBurden of Proof 530\u003c\/p\u003e \u003cp\u003eImplementation 530\u003c\/p\u003e \u003cp\u003eAnnex 1: Test of Control—Associated Undertaking 530\u003c\/p\u003e \u003cp\u003eAnnex 2: Arm’s Length Pricing Methodologies 531\u003c\/p\u003e \u003cp\u003eAnnex 3: Appropriate Pricing Methodology—Factors to Consider 536\u003c\/p\u003e \u003cp\u003eAnnex 4: Comparability of an Uncontrolled Transaction—Factors to Consider 536\u003c\/p\u003e \u003cp\u003eAnnex 5: Prescribed Documentation 537\u003c\/p\u003e \u003cp\u003eSuggested Supporting Documents 538\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 30 Taiwan Transfer Pricing 539\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEnactment of the Transfer Pricing Statute 539\u003c\/p\u003e \u003cp\u003eTransfer Pricing Regulations 540\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 31 Thailand Transfer Pricing 547\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransfer Pricing Booklet 548\u003c\/p\u003e \u003cp\u003ePart 1: Tax Legislation Impacting Transfer Pricing 548\u003c\/p\u003e \u003cp\u003eRevenue Department of Thailand Departmental Instruction Paw 113\/2545 549\u003c\/p\u003e \u003cp\u003ePart 2: Methodologies in Calculating Market Price 554\u003c\/p\u003e \u003cp\u003ePart 3: Process in Establishing the Market Price 554\u003c\/p\u003e \u003cp\u003eProcess of Establishing the Market Price 556\u003c\/p\u003e \u003cp\u003eGuidelines on the Determination of Market Price 557\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 32 Vietnam Transfer Pricing 559\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExpansive View of Related Party Ownership 560\u003c\/p\u003e \u003cp\u003eTransfer Pricing Methods 560\u003c\/p\u003e \u003cp\u003eDocumentation Requirements 561\u003c\/p\u003e \u003cp\u003eCompliance Considerations 561\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART TWO: ADVANCED APPLICATIONS 565\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 33 Services Transfer Pricing in Hong Kong and in Singapore 567\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eServices Transfer Pricing in Hong Kong and in Singapore: Basic Comparison 567\u003c\/p\u003e \u003cp\u003eHong Kong Services Transfer Pricing Methods 568\u003c\/p\u003e \u003cp\u003eShareholder Activity and Stewardship Functions 569\u003c\/p\u003e \u003cp\u003eFinancial Services Audit Example 570\u003c\/p\u003e \u003cp\u003eDeduction of Expenditures Paid for Intragroup Services 570\u003c\/p\u003e \u003cp\u003e“Objective Commercial Explanation” Standard 571\u003c\/p\u003e \u003cp\u003eDetermining the Amount of Intragroup Charges 572\u003c\/p\u003e \u003cp\u003eServices Provided by a Permanent Establishment 573\u003c\/p\u003e \u003cp\u003eScope of Activities for Related Party Services in Singapore 574\u003c\/p\u003e \u003cp\u003eSingapore Transfer Pricing Services Guidelines 575\u003c\/p\u003e \u003cp\u003eDirect Charging versus Indirect Charging of Services 576\u003c\/p\u003e \u003cp\u003eAscertaining the Arm’s Length Fee 577\u003c\/p\u003e \u003cp\u003eRoutine Services and the 5% Markup in Singapore 577\u003c\/p\u003e \u003cp\u003eCost Pooling Contracts 580\u003c\/p\u003e \u003cp\u003eCost Pooling versus Pass-Through Allocation Alternatives 582\u003c\/p\u003e \u003cp\u003eDocumentation 583\u003c\/p\u003e \u003cp\u003eNotes 583\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 34 Permanent Establishment Parameters: Hong Kong versus India 585\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGeneral Permanent Establishment Considerations 586\u003c\/p\u003e \u003cp\u003ePermanent Establishment Considerations in India 586\u003c\/p\u003e \u003cp\u003ePermanent Establishment Considerations in Hong Kong 588\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 35 Pacific Tax Administrators Coordinate Transfer Pricing Documentation 591\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 591\u003c\/p\u003e \u003cp\u003ePATA Provisions 593\u003c\/p\u003e \u003cp\u003eThree Operative Principles 594\u003c\/p\u003e \u003cp\u003eSpecifi c Mandatory Documentation 596\u003c\/p\u003e \u003cp\u003eNotes 603\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 36 Shared Services and Cost Pooling Arrangements in the United States and Singapore 605\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistorical Background 606\u003c\/p\u003e \u003cp\u003eExplanation of the Shared Services Arrangement Provisions 606\u003c\/p\u003e \u003cp\u003eShared Services Arrangements 608\u003c\/p\u003e \u003cp\u003eServices Cost Method Examples 611\u003c\/p\u003e \u003cp\u003eSingapore Shared Services Arrangements 620\u003c\/p\u003e \u003cp\u003eNotes 622\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 37 South Korea–Japan Bilateral Investment Treaty 623\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 623\u003c\/p\u003e \u003cp\u003eU.S. Involvement in BITS 624\u003c\/p\u003e \u003cp\u003eArbitration 624\u003c\/p\u003e \u003cp\u003eICSID Arbitration 624\u003c\/p\u003e \u003cp\u003eTreaty Shopping within the Bilateral Investment Treaty Context 625\u003c\/p\u003e \u003cp\u003eTax Provisions within the Korea–Japan Bilateral Investment Treaty 626\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 38 China–Taiwan Trade 629\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTaiwan and China: A History Lesson 629\u003c\/p\u003e \u003cp\u003eEconomic Considerations 630\u003c\/p\u003e \u003cp\u003eOne-China Policy 630\u003c\/p\u003e \u003cp\u003eEconomic Cooperation Framework Agreement 631\u003c\/p\u003e \u003cp\u003eTax Considerations 632\u003c\/p\u003e \u003cp\u003eChoice of Transfer Pricing Method 633\u003c\/p\u003e \u003cp\u003eFunctional Analysis 634\u003c\/p\u003e \u003cp\u003eAnalysis of the Production Activities 634\u003c\/p\u003e \u003cp\u003eFact Pattern 635\u003c\/p\u003e \u003cp\u003eAccounting and Tax Operations 635\u003c\/p\u003e \u003cp\u003ePermanent Establishment 636\u003c\/p\u003e \u003cp\u003eTaiwanese–Chinese Electronics Company 636\u003c\/p\u003e \u003cp\u003eTransactional Profi t Split Method Criteria 637\u003c\/p\u003e \u003cp\u003eMost Appropriate Transfer Pricing Method 637\u003c\/p\u003e \u003cp\u003eAllocation Key System 637\u003c\/p\u003e \u003cp\u003eStrong Correlation Standard 638\u003c\/p\u003e \u003cp\u003eSelecting among Allocation Keys 638\u003c\/p\u003e \u003cp\u003eAPA Process 640\u003c\/p\u003e \u003cp\u003eNotes 640\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 39 Malaysia–Singapore Allocation Keys 643\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eImportance of Allocation Keys 643\u003c\/p\u003e \u003cp\u003eSelection of the Real Estate Leasing Example 644\u003c\/p\u003e \u003cp\u003eWhen the Transactional Profit Split Method Is the “Most Applicable” Transfer Pricing Method 644\u003c\/p\u003e \u003cp\u003eSpecialized Services 645\u003c\/p\u003e \u003cp\u003eApplying the Transactional Profit Split Method 646\u003c\/p\u003e \u003cp\u003eFour Allocation Keys Categories 647\u003c\/p\u003e \u003cp\u003eKey Functions 647\u003c\/p\u003e \u003cp\u003eSelecting Potential Allocation Keys 648\u003c\/p\u003e \u003cp\u003eResidential Condominium Leasing Example 648\u003c\/p\u003e \u003cp\u003eResidential Condominium Database 650\u003c\/p\u003e \u003cp\u003eSelecting among Allocation Keys 650\u003c\/p\u003e \u003cp\u003e“Strong Correlation” Standard 651\u003c\/p\u003e \u003cp\u003eAllocation Keys 652\u003c\/p\u003e \u003cp\u003eTransfer Pricing Strategies 656\u003c\/p\u003e \u003cp\u003eCorporate Tax Strategy 657\u003c\/p\u003e \u003cp\u003eMalaysia’s Tax Strategy 657\u003c\/p\u003e \u003cp\u003eNotes 658\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 40 Permanent Establishment Parameters 659\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOECD’s Permanent Establishment Provisions 660\u003c\/p\u003e \u003cp\u003eConsequences of Permanent Establishment Status 660\u003c\/p\u003e \u003cp\u003eConsequences of a Permanent Establishment to Business 661\u003c\/p\u003e \u003cp\u003eTransfer Pricing and Permanent Establishment 661\u003c\/p\u003e \u003cp\u003eOverall Tax Considerations 662\u003c\/p\u003e \u003cp\u003ePotential for the Imposition of Two Levels of Taxation 662\u003c\/p\u003e \u003cp\u003eOECD Approach to Determine Permanent Establishment 663\u003c\/p\u003e \u003cp\u003eHong Kong Applies the OECD Permanent Establishment Provisions 663\u003c\/p\u003e \u003cp\u003eHow Hong Kong Applies the Permanent Establishment Provisions 664\u003c\/p\u003e \u003cp\u003eCommon Law Permanent Establishment Criteria 665\u003c\/p\u003e \u003cp\u003eDirect Activities 665\u003c\/p\u003e \u003cp\u003eAgency Relationships 666\u003c\/p\u003e \u003cp\u003eShareholder Activities in Subsidiaries’ Locations 667\u003c\/p\u003e \u003cp\u003ePresence of Personnel Shifts among Entities 668\u003c\/p\u003e \u003cp\u003eEntirety of the Operations 668\u003c\/p\u003e \u003cp\u003eDeclining Businesses 668\u003c\/p\u003e \u003cp\u003e“Preparatory to” and “Auxiliary from” Exemptions 669\u003c\/p\u003e \u003cp\u003eTime Spent 669\u003c\/p\u003e \u003cp\u003eWill the OECD Approach Prevail? 669\u003c\/p\u003e \u003cp\u003eNotes 670\u003c\/p\u003e \u003cp\u003eAbout the Authors 671\u003c\/p\u003e \u003cp\u003eIndex 673\u003c\/p\u003e \u003cp\u003e\u003cb\u003eRobert Feinschreiber (Key Biscayne, FL)\u003c\/b\u003e is an attorney with Feinschreiber and Associates. He has had numerous career highlights (e.g., youngest full-time law professor in the United States when appointed (Wayne State University), age 23; member of the litigation team for the first Asian transfer pricing case (Toyota)). In addition, he is a consultant with the United Nations (Brazil, China, and Russia). Feinschreiber is on the editorial board of Wolters Kluwer — CCH, and Thomson — RIA. He has written over 25 books and is the co-editor of \u003ci\u003eCorporate Business Taxation Monthly\u003c\/i\u003e (CCH). He speaks at numerous conferences in the United States and Asia.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMargaret Kent (Key Biscayne, FL)\u003c\/b\u003e is an attorney with Feinschreiber and Associates. She focuses on law and international taxation. She has been involved in a number of international transactions (i.e., structured the termination of the $2 billion per year aid from Russia to Cuba; structured transfer pricing in Latin America: Argentina, Chile, Colombia, Costa Rica, and Venezuela). Kent is also the co-editor of \u003ci\u003eCorporate Business Taxation Monthly\u003c\/i\u003e (CCH).\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988766736613,"sku":"NP9781118359372","price":189.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118359372.jpg?v=1761781510","url":"https:\/\/k12savings.com\/es\/products\/asia-pacific-transfer-pricing-handbook-isbn-9781118359372","provider":"K12savings","version":"1.0","type":"link"}