Transfer pricing (TP) is a means of pricing the transactions between related parties, based on the arm’s length principle recognized internationally, which is to determine what the price should have been if the transaction had been carried out between unrelated parties under comparable conditions.
In recent years, there have been noteworthy developments in international taxation. A few years ago, OECD (Organization for Economic Cooperation and Development) issued a measurement action plan in response to OECD Base Erosion and Profit Shifting (BEPS) Action Plan, which included requirements to develop regulations relating to transfer pricing (TP) documentation.
With the market shift, it becomes more critical for multinational companies to adapt & transform their transfer pricing (TP) workflows in order to minimize tax risk.
With the global growth of businesses, government agencies & tax administrators are demanding more transparency about companies’ tax affairs, which has resulted in increased compliance requirements for transfer pricing. Therefore, transfer pricing policy and framework have become critical & integral parts of the company’s compliance requirements. Hence, the transfer pricing policy framework can significantly impact a company’s reputation.
Insights can assist you in putting a transfer pricing framework in place which will be identifying the key value drivers of your business and can be helpful to defend the company’s position in case of an audit.
Our transfer pricing services are sustainable & in line with the OECD guidelines. We consider the broader commercial objectives of businesses in our approach. We assist clients in preparing transfer pricing policies, performing benchmarking studies, and documenting policies in the light of OECD Guidelines for local as well as master files.
How can we help you?
Every group has its own TP challenges. We can assist you to prepare transfer pricing (TP) documents as per the format recommended by OECD, which will prove a robust defense in case of HMRC inquiry.