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Case Study 10: Distribution Services (China/US)

WTP Advisors was retained by the management of a newly-formed US subsidiary of a Chinese company to assist them in developing a defensible transfer pricing strategy for sales and services to be provided between the parent company and the US distribution subsidiary. Our transfer pricing recommendations and draft distribution agreement facilitated successful agreements between the parent company and the partially-owned subsidiary regarding management incentives and profit sharing between the parent company and US management of the subsidiary.

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