The finance and tax questions manufacturers ask most

How should pricing evidence be prepared when related-party transactions are large?

The point is to show the price is arm's length: where third-party comparables exist, compare unit prices for the same specification and period line by line; where they do not, explain the pricing through the buy-sell spread and processing-cost coverage, and keep the working papers and pricing approvals.

Related-party purchases or sales above 30% amount to significant dependence; it is the first question Yidao asks when scoping.
Companies with related-party transactions file the annual related-party transaction report, and above the set thresholds they also prepare contemporaneous documentation (STA Announcement No. 42 of 2016).
What M02 delivers: a completeness list of related parties, concentration and share analysis, price fairness working papers, and a target cost-plus margin with repricing proposals.

This page is general information only and is not tax, legal or accounting advice on any particular matter. Policy references reflect the documents in force at the time of writing; how they apply depends on the company's facts and on the local tax authority.

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