What are transfer prices and how do I determine them? These questions are increasingly being asked by multinational firms. As interface between international tax law and business management, transfer pricing is often challenging for multinational firms.
For tax purposes, the arm’s length principle is the heartbeat of transfer prices. This internationally established principle has been revised by the OECD/G20 recommendations concerning the avoidance of base erosion and profit shifting (BEPS). Business models, value drivers as well as the manner of value creation within multinational firms are becoming increasingly important for transfer pricing analyses.
In order to keep pace with the changes of the last years, competent partners are more important than ever to manage transfer price planning and compliance. QUANTUM is a competent advisor supporting multinational firms in
- Implementation of new transfer price structures,
- Determination of arm’s length transfer prices for intra-group deliveries and services,
- Preparation of transfer pricing documentation,
- Transfer pricing tax audits,
- Support in Mutual Agreement Procedure (MAP) or Advance Pricing Agreement (APA) Procedures in case of economic double taxation.