Transfer pricing in a global context
The increasing globalisation of the world’s economy has had an enormous impact on the international trade between group companies. It also means that transfer pricing regulations have become a major focus for national fiscal authorities. The possibility that transfer pricing activities could lead to a situation where profits are shifted to other areas in a way that is not consistent with the actual value creation process and the business activities of the transaction partners has been a focal point of tax audits for some time, particularly since the release of the BEPS action plan by the OECD.
Numerous additions to transfer price regulations (e.g. regarding the allocation of risks, the exercise of DEMPE functions in connection with so-called intangibles, transfer pricing of services, the increased weighting under the profit split method etc.), as well as increased requirements for transfer price compliance (e.g. the three-level documentation approach consisting of country-by-country reporting, master file and local file) and the associated transparency requirements create complex challenges for taxpayers.
Our experienced team consists of transfer pricing specialists who can assist you with all aspects of your domestic and foreign transfer pricing obligations and documentation requirements, and with the planning and implementation of international value chains. We analyse the current situation, adapt existing transfer pricing systems or work with you to develop recommendations for establishing a tax-optimised transfer pricing system that is designed take into account business parameters, reduce the risk of double taxation and prevent costly and time-consuming discussions with tax authorities. If needed, we can also help defend existing intragroup transfer pricing mechanisms and systems. To this end, we can draw on our well-known international network of partner law firms – a network that has proven its worth with many successful joint projects.
- Update of existing/conceptualisation and implementation of BEPS-compliant transfer pricing systems and tax-optimised value chains
- Creation of clear function and risk structures, and optimisation of intragroup supply and service transactions
- Analysis of the impact of changes on group structures (business restructuring)
- Development of/support with depicting the transfer price-specific aspects of intragroup supply and service transactions (including the development of intragroup supply, service, allocation and license agreements etc.)
- Intragroup financing, implementation of cash pools
- Design of intragroup employee secondments
- Efficient identification of transfer price risks and potentials for optimisation
- Tailored Quick Check for the rapid identification of potential transfer price risks
- Conceptualisation and implementation of efficient and customised transfer price documentation models in accordance with legal requirements (centralized documentation approaches, master/local files, CbC reporting etc.)
- Advice for automation-supported tools or web-based solutions to ensure uniform documentation across countries
- Support with audits so disputes may be settled amicably without the involvement of the courts
- Management of bilateral and multilateral arbitration and mutual agreement procedures (MAP)
- Defense of existing intragroup transfer pricing mechanisms and transfer pricing systems in appeal proceedings
- Request for rulings and initiation of advance pricing agreements (APAs)
- Advice re: VAT, customs and foreign trade legislation in connection with transfer prices