Consultations on transfer pricing
Determination of compliance of the price (level of profitability) to the principle of “outstretched hands”
Analysis of possible risks of the Company in terms of transfer pricing
Very often the clients face the situation, when they try themselves to prepare reports on transfer pricing, the reasons for this can be the following: self-confidence, limited budget, etc. Though sometimes even the professional accountant has difficulties in understanding all nuances and novelties in the sphere of transfer pricing.
The EBS professionals are always ready to help to solve the following tasks:
- Which approach to application of the transfer pricing methods is the most appropriate?
- Which transfer pricing method shall be used?
- Which party to the transaction shall be chosen for the analysis?
- What profitability index shall be used?
- What information sources can be used?
- What approach can be recommended for selection of the period under analysis?
- What are the comparability criteria?
- What price (level of profitability) can be considered as compliant with the arm’s length principle? In order to answer these questions we can carry out benchmarking (analysis of prices or profitability in the comparable transactions or comparable companies), calculate market range and forecast market range for the future periods.
- Analysis of the company’s possible risks relating to the transfer pricing in case of transaction with a certain non-resident and opportunity to mitigate such risks; analysis of the contractual provisions in order to make recommendations on introduction of changes for the purposes of transfer pricing rules (if necessary).
Extensive knowledge and many years of experience of EBS professionals enable us to provide consultations on any issues relating to the transfer pricing – ranging from consultation on preparation of reports on the controlled transactions to business structuring and preparation of CbC Reporting.
The services relating to the transfer pricing can be provided once or on a regular basis with discussion of the amount of time spent for this project.
The cost of these services is discussed with each client individually and depends on the complexity of the consultations and on time spent by the specialists.