In purchases and sales of goods and services with related parties, prices must be consistent with those two independent companies would agree. Otherwise the difference may be treated as a disguised profit distribution through transfer pricing, resulting in additional tax and penalties.
We review your intra-group transactions against the arm's length principle, select the appropriate method and prepare the required reports and forms. In the same work we assess whether borrowings from shareholders or group companies stay within the thin capitalisation limits.
Scope of work
In every engagement we cover the following areas, tailored to the structure of your company.
- 01
Identifying and classifying related-party transactions
- 02
Selecting and applying the arm's length method
- 03
Annual transfer pricing report
- 04
Preparing the transfer pricing form
- 05
Reviewing thin capitalisation and interest
- 06
Assessing intra-group services and financing
How we work
- 01
Transaction map
We chart the flows of goods, services and financing within the group together.
- 02
Method selection
We determine the appropriate method for each type of transaction.
- 03
Analysis
We compare prices with comparable data and calculate deviations and their effect.
- 04
Report and form
We prepare the report and form and, where useful, recommend a pricing policy.
Who it is for
Group companies, businesses with foreign shareholders or subsidiaries, and companies trading or financing regularly with their shareholders.