Transfer prices are charges for goods or services between related international legal entities, within an international corporate group and/or among different country divisions of an enterprise. Transfer prices normally match either what the seller would charge an independent customer, or what the buyer would pay an independent supplier.
But prices netted over a period of time by tax authorities of an involved country may not be accepted by the tax authorities of another country. This can result in double taxation and may even threaten the existence of a Group.
Such a scenario can be prevented by – on the one hand – defining prices and clearing modalities in advance and – on the other hand – applying practices within the framework described by the OECD guidelines. Confides is familiar with this topic having gained in-depth practical knowledge over a long period of time.
We help our customers to minimize or even eliminate the risk of double taxation, while at the same time stay within the OECD guidelines and safeguard the financial goals. In tandem with the customer, Confides works out a tailor-made set of rules, establishes the first documentations and accompanies the customer through all applicable processes.
- Analysis of structures and transfer prices currently in place within a corporation
- Establishment of appropriate, tailor-made solutions
- Definition and implementation of guidelines in a book of rules for transfer pricing
- Ensuring the integration of OECD guidelines
- Periodic reviews and monitoring the practical use of implemented guidelines, taking into account structural and organisational changes within the company.