Transfer pricing

What Does Transfer Pricing Represent?

Transfer pricing represent the prices for goods and services transfer between affiliate companies. If your company deals with transactions with related parties, you are obliged to submit a transfer tax document which contains sufficient data to confirm the prices from your transactions with affiliated companies are in accordance with the “arms-length principle“.

When preparing documentation for transfer pricing, it is crucial that you pay attention to the following:

  • The identification of affiliated companies.
  • Whether the transactions with related companies exceed the limit for which a detailed bench-marking analysis and transfer pricing study must be undertaken.
  • Information which needs to be included in a transfer pricing study for it to be in accordance to domestic legislation and best international practices.
  • The methodology which is applied for determining the market price for the transactions with related parties.
  • The effects of corporate income tax obligations regarding loans that you have given to or taken from related parties.


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