1. One party holds more than 25% of the shares of the other party;

2. If both enterprises are owned by a third-party enterprise with more than 25% of the shares, the three enterprises are affiliated enterprises;

3. One party borrows more than 50% of its total capital from the other party, or more than one tenth of the amount borrowed by one enterprise is guaranteed by another enterprise.

The tax authorities may adjust the taxable income or the income of affiliated enterprises in the following ways:

1, according to the price of the same or similar business activities between independent enterprises;

2. The income and profit level that should be obtained according to the resale price to an unrelated third party;

3, according to the cost plus reasonable expenses and profits;

4. According to other reasonable methods.

To sum up, business dealings between enterprises with foreign investment or institutions and places engaged in production and business operations established by foreign enterprises in China and their affiliated enterprises shall be conducted in accordance with business dealings between independent enterprises (business dealings between independent enterprises refer to business dealings between unrelated enterprises in accordance with fair transaction prices and business practices. ) charge or pay the price.

Legal basis:

Company Law of the People's Republic of China

Article 2 16

The meanings of the following terms in this Law:

1. Senior management refers to the manager, deputy manager, financial officer, secretary of the board of directors of listed companies and other personnel stipulated in the articles of association.

2. Controlling shareholders refer to shareholders whose capital contribution accounts for more than 50% of the total capital of a limited liability company or whose shares account for more than 50% of the total share capital of a joint stock limited company; Although the capital contribution or the proportion of shares held is less than 50%, but according to their capital contribution or shares held, shareholders have enough voting rights to the shareholders' meeting and the resolutions of the shareholders' meeting.

3. The actual controller refers to the person who can actually control the company's behavior through investment relations, agreements or other arrangements, although he is not a shareholder of the company.

4. Affinity refers to the relationship between the controlling shareholder, actual controller, directors, supervisors and senior managers of the company and the enterprises directly or indirectly controlled by them, as well as other relationships that may lead to the transfer of the company's interests. However, state-controlled enterprises are not related only because they are controlled by the state.