Politics & Regulation

Hong Kong authorities focus on transfer pricing


Patrick Cheung
Tax advisers have observed more queries from tax authorities in Hong Kong on transfer pricing arrangements as hedge funds locate more of their personnel in the city.

Patrick Cheung, a partner at Ernst & Young, says a typical question that local tax authorities are now looking into is to what extent they could tax management fee revenues declared to have been generated offshore and so not taxable under Hong Kong tax laws.

Transfer pricing, which refers to the price assigned to products or services transferred between group companies, has been identified by the