Transfer pricing documentation preparation

If you are carrying out transactions with related entities, you should know that it is compulsory to prepare a transfer pricing documentation report that should be submitted to the the tax authority upon request.

Regarding the transfer pricing documentation preparation our specialists offers the following services:

  • Evaluation of transactions carried out with related parties and preparation of recommendations about necessity and scope of the transfer pricing documentation
  • In case transfer pricing documentation are prepared by your personal team, we may evaluate it
  • Comparability study (the selection of the comparable companies or business transactions) to justify the prices applied with the related companies (usually referred to as “benchmarking study”)
  • Provision of recommendation about the most appropriate transfer pricing method for a particular transaction
  • Provision of recommendation about the practical application of the transfer pricing methodology: price adjustments, the preparation of the justification document

From 1 January of 2013 the companies which generate the net turnover over EUR 1 430 000, and having the related-party transaction value over EUR 14 300, is required to prepare the transfer pricing documentation. Even though for other companies that do not meet the above criteria, but still have the transactions with related party, the tax authorities can demand evidence that confirms the compliance of the transaction to the arm’s length.