Let’s dive into the transfer pricing implementation topics:
Transfer pricing implementation bridges the gap between a transfer pricing strategy or policy and daily operational transfer pricing.
After carefully setting the correct transfer pricing policy, it’s time to start your transfer pricing implementation. In this process, controls are needed to track whether the implementation is performed correctly.
Transfer pricing implementation is about translating transfer pricing policies into actionable, compliant, and auditable processes that work seamlessly within your organization’s operations. With increasing scrutiny from tax authorities worldwide, ensuring that your transfer pricing policies are correctly implemented and consistently monitored is essential to minimize risk and maintain compliance.
While many businesses establish transfer pricing policies, the real challenge lies in applying these policies accurately across all relevant transactions and financial systems.
To support you in managing your transfer pricing implementation process from A to Z, we bring our newest offering regarding operational transfer pricing to you. This service is focused to streamline your implementation and obtain control over this process from start to finish (see figure below).
The goal of these steps is to translate your company’s transfer pricing policy into correct intercompany invoices and reports. These reports can consist of monitoring reports to track if the policy is followed in practice and robust transfer pricing documentation to fulfill your compliance obligations.
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Catch red flags before tax authorities do, use our TP scan. A senior advisor will review your transfer pricing approach in a short call – free & confidential.
Watch our webinar or reach out to schedule a brainstorm session, so we can determine your needs based on the current situation and the goal to reach. In this session, we can show you possible scenarios and set a solid project plan (workload and timing) to consider. This 3 hour brainstorm is free of charge, as we appreciate investing in long term relationships.
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Operational Transfer Pricing is the practical execution of your transfer pricing policy, pricing individual intercompany transactions, booking them correctly in ERP and financial statements, and monitoring results so outcomes align with policy.
Compliance is the preparation, maintenance and filing of transfer pricing documentation and disclosures, including Master File, Local Files, CbCR and intercompany agreements, aligning evidence with your policy to meet local rules and reduce audit risk.
Within the transfer pricing and tax landscape there are many software solutions. The right choice depends on your business model, systems, and compliance needs. As an independent transfer pricing firm, Quantera Global advises which software vendors may best serve your situation. We help you decide what fits best Our role is to clarify needs, compare options, and help you […]
Advance Pricing Agreements (APAs) are legally binding agreements between the taxpayer(s) and the tax authorities used to obtain prior certainty on the application of transfer pricing methods and/or transfer pricing rules for a certain (set of) transaction(s). This Transfer Pricing agreement could include an agreement on the most appropriate transfer pricing method to be applied. APAs must be aligned with the law and the transfer pricing regulations of the countries involved.
Rulings are formal agreements with tax authorities that provide upfront certainty on how tax law and transfer pricing apply to your specific facts, using instruments such as APAs (bilateral or multilateral), Innovation Box rulings and MAPs to reduce audit risk, prevent corrections and mitigate double taxation.