Transfer pricing policy planning

Transfer Pricing policy planning help organisations manage their transfer pricing risks, fulfil regulatory compliance and design effective transfer pricing policies.

Why is Transfer Pricing advice important

As multinationals search for more efficient ways to compete in the global market, cross-border transactions between related companies are increasing in number and complexity.

In conjunction with this trend, tax authorities around the world are becoming more sensitive to the ways in which transfer pricing affects local tax revenues. Many jurisdictions are responding by strengthening legislation, implementing stricter documentation requirements, and imposing penalties for non-compliance.

Transfer pricing policy planning

Unlike documenting the prices of existing transactions, the purpose of devising a transfer pricing policy is to make plans for future transactions or restructure existing transactions. For example, transfer pricing policy planning can include:

  • a functional analysis of the proposed transactions,
  • selecting an appropriate transfer pricing method,
  • suggestions for setting price levels,
  • recommendations for preparing legal documents.

Benefits

  • Planning and documenting tax-compliant transactions will help avoid issues and disputes with the tax authorities in the future.
  • Your transfer pricing policy can later serve as a document supporting your arm’s length prices if your transactions are in line with that policy.

If you are interested in Vinasc’s Transfer Pricing Services, please contact us. We will send a letter of quotation for your consideration.