Transfer pricing
The increased attention for transfer pricing places greater demands on the internal organisation and on reporting. Internal transfer pricing should be in line with market standards. Both nationally and internationally, mutual transactions must be carried out on the basis of commercial principles. In addition, there is also an obligation to document the basic premises used for calculated prices and agreements concluded. In other words, you must demonstrate that you are employing competitive internal prices. Recent national legislation on transfer pricing is derived from the guidelines set up by the Organisation for Economic Cooperation and Development (OECD).
The burden of proof for the accuracy of the calculated prices has now been placed on the entrepreneur. Insufficient documentation can lead to prolonged, costly discussions with the tax authorities. Inaccurate transfer pricing can lead to high additional tax assessments and fines.
For years now, the advisors at Grant Thornton have acquainted themselves thoroughly and intensively with the – national and international – issues involved. They design and implement transfer pricing schemes for national and multinational businesses. In centralising services, they determine the right costs and margins based on benchmarking. This process involves, for example, pricing of shared services, supply chain analyses and cost-sharing agreements.
In addition, Grant Thornton also supports any procedure of your choosing with respect to the tax authorities, including:
- supervising tax audits
- consulting and negotiating with the tax authorities
- establishing and obtaining approval for transfer agreements
- conducting precautionary meetings with the tax authorities by means of advanced pricing agreements (APAs)
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