Compliance (incl. Transfer Pricing documentation)
The timely preparation of Transfer Pricing documentation has become a significant part of the compliance burden of SME’s and MNE’s. It is often seen as a time-consuming and costly exercise. To ensure your time and budget is spent where it adds the most value, we help in determining a compliance strategy that supports you, your company and your risk appetite the best way possible, while optimizing cost efficiency. Separately we can provide support on all types of compliance documents, in a pay-as-you-go form, cooperative form or in a subscription form. In addition, we offer a software solution that allows you to meet your compliance requirements with or without our support. We apply a menu-based approach for the preparation of Transfer Pricing documentation that allows you to tailor our support to your specific circumstances, click here for an overview.
We support our clients in this category in the following areas:
Together with you, we determine the level of compliance that suits your company best. We take into account your risk appetite, how you wish to structure your overall Transfer Pricing documentation, which files need to be prioritized and how to best organize the different roles in preparation of the documentation (yourself, colleagues, external advisors like us and whether software is beneficial).
- An annual requirement in most jurisdictions and prepared on a group level.
- Focuses on describing the context in which intercompany transactions take place.
- An annual requirement per group company/country depending on local tax legislation and thresholds which vary by country.
- Focus on describing the local organization and its material intercompany transactions.
- Transactions can be described inside local files or be prepared as a separate report for consistency and efficiency.
- For incidental transactions as restructurings also separate reports may be prepared.
- Substantiate the intercompany pricing applied with support of databases (or internal data) and are required per material type of intercompany transaction.
- A separation can be made between benchmark studies for:
- operational activities as manufacturing, sales or services (TNMM studies)
- the licensing of IP (royalty studies)
- financial transactions / intercompany loans
- We provide these studies for all regions and with support of the industry leading databases (Bureau van Dijk, Royalty Range and Bloomberg).
TP documentation for SMEs and start-ups
- Small and Medium Enterprises as well as start-ups often don’t have to meet the Master File and Local File requirements but can prepare documentation in a free format.
- We can support with a policy paper which:
- meets the lower documentation requirements,
- provides internal and external clarity on how to apply the Transfer Pricing policy,
- is scalable when needed, and
- comes at a lower cost.
- Provide the legal basis for the intercompany transactions applied.
- Are required per (material) type of intercompany transaction for the entities involved.
- We can work together with in-house legal counsel or outside legal counsel in preparing such intercompany agreements or perform a review.
- Only required for MNEs with a consolidated turnover of more than 750 million euros.
- Is an annual requirement, including the related annual notifications.
- Provides information by country for high-level TP risk assessment purposes.
- We support in filing, preparation, risk analysis and notifications.