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TAX & FINANCE · CHINESE LEGAL GLOSSARY REVIEWED SEP 2026
转让定价

Transfer pricing

The tax rules and methods used to test whether related-party transactions comply with the arm’s-length principle.

CHINESE转让定价
PINYINzhuanrang dingjia
PREFERRED ENGLISHTransfer pricing
AREATax & finance
WHAT 转让定价 MEANS

What 转让定价 means

Chinese tax authorities may review pricing for related-party goods, services, financing and intangible transactions. Methods include comparable uncontrolled price, resale price, cost plus, transactional net margin and profit split, among others.

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Why the role matters

Transfer pricing should be coordinated with customs valuation, intercompany contracts, functional analysis and contemporaneous documentation; inconsistent positions across regulators can create risk.

CONTEXT

Where you see the term

ContextWhat it means there
Intercompany salesPrice of goods between related entities.
Services / royaltiesTax authority tests functions, benefits and pricing.
Tax auditDocumentation supports arm’s-length position.
TRANSLATION NOTE
文/A

Translation note

转让定价 is “transfer pricing”. It refers to pricing between related parties for tax purposes, not a corporate equity transfer.

AUTHORITY

Primary legal basis

PRIMARY AUTHORITY

PRC Enterprise Income Tax framework and SAT special tax adjustment rules

Chinese tax rules apply the arm’s-length principle and recognized transfer-pricing methods.

Chinese tax rules apply the arm’s-length principle and recognized transfer-pricing methods.

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ILLUSTRATIVE EXAMPLE

Example

A China distributor earns a persistently low margin while paying large service fees to its parent. The tax authority may test whether the related-party pricing reflects the functions and risks in China.

SOURCES AND REVIEW

Primary authorities.

Last source check
18 Sep 2026
MAINTAINED BYChina Legal Portal Editorial
LAST REVIEWED
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