Transfer pricing in a global context
The increasing globalisation of the world’s economy has had an enormous impact on the international trade between group companies. It also means that transfer pricing regulations have become a major focus for national fiscal authorities. The possibility that transfer pricing activities could lead to a situation where profits are shifted to other areas in a way that is not consistent with the actual value creation process and the business activities of the transaction partners has been a focal point of tax audits for some time, particularly since the release of the BEPS action plan by the OECD. Numerous additions to transfer price regulations (e.g. regarding the allocation of risks, the exercise of DEMPE functions in connection with so-called intangibles, transfer pricing of services, the increased weighting under the profit split method etc.), as well as increased requirements for transfer price compliance (e.g. the three-level documentation approach consisting of country-by-country reporting, master file and local file) and the associated transparency requirements create complex challenges for taxpayers.
Our experienced team consists of transfer pricing specialists who can assist you with all aspects of your domestic and foreign transfer pricing obligations and documentation requirements, and with the planning and implementation of international value chains. We analyse the current situation, adapt existing transfer pricing systems or work with you to develop recommendations for establishing a tax-optimised transfer pricing system that is designed to take into account business parameters, reduce the risk of double taxation and prevent costly and time-consuming discussions with tax authorities. If needed, we can also help defend existing intragroup transfer pricing mechanisms and systems. To this end, we can draw on our well-known international network of partner law firms – a network that has proven its worth with many successful joint projects.
- Identifying the risks of your existing transfer pricing
- Updating the existing transactions or setting up new transactions with regard to transfer pricing
- Preparing a comparability analysis (benchmark) to assess the correct setting of transfer prices (using Thomson Reuters, Amadeus)
- Support in the creation of a functional and risk analysis
- Analysis of the effects of transferring functions or parts of a company abroad
- Support in the drafting of contracts within the group for the supply of goods and services, cost invoicing, licensing contracts, etc.
- Updating the existing or preparing new transfer pricing documentation
- Representation during tax audits
- Representation in the APA process (unilateral as well as multilateral approval of transfer pricing)
- Representation in the MAP process and arbitration