Closer scrutiny on management fee and head office recharge arrangements
Closer scrutiny on management fee and head office...
Hong Kong Tax Alert - Issue 9, August 2016
Management fee or head office recharge arrangements are nothing new to companies in Hong Kong. Many companies may believe a reasonable allocation model is in place but does it really address all the key areas that tax and regulatory bodies may be after? This tax alert highlights some common issues observed for companies with intercompany service and cost recharge arrangements and what other factors a company may potentially need to take into consideration when setting the transfer pricing policy.