What is an affiliated enterprise?

A: Associated enterprises refer to companies, enterprises and other economic organizations that have one of the following relationships:

(1) There is a direct or indirect ownership or control relationship in capital, operation, purchase and sale, etc.;

(2) owned or controlled directly or indirectly by a third party;

(3) Other interests. ...

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 level of income and profit that should be obtained at the price of resale to an unrelated third party;

(3) according to the cost plus reasonable expenses and profits;

(4) According to other reasonable methods.