Tax Compliance

Transfer pricing has impacts on more than just the Tax Department. In order to ensure compliance with tax regulations in the area of transfer pricing, we support you in preparing transfer pricing guidelines that can be applied in other departments of your company.

Companies operating globally must explain transfer pricing not only to the Tax Department but also to other departments such as Accounting, Controlling, HR, Marketing, Procurement, Research & Development and IT and provide them with transfer pricing guidelines in order to avoid potential risks, which could unknowingly occur in these departments (e.g. transferring a patent without a fee to a foreign subsidiary).

Nexia supports you in optimising your tax compliance in the area of transfer pricing, in preparing a risk-based controlling matrix and in designing processes for mitigating liability risks. Transfer pricing interfaces are thereby identified between specialised departments making operational decisions in the daily work, which could unknowingly trigger transfer pricing risks without anyone in the Tax Department or anyone in management with tax and organizational responsibilities (e.g. CFO) being informed of such decisions.

Our services in the area of tax compliance for your transfer pricing system encompass: 

• Business process simulation (health check)
  • Reviewing transfer prices
  • Analysing already existing documentation
  • Analysing whether transfer prices were appropriately set at arm’s length
  • Determining which areas can be optimised
• Preparing transfer pricing policy
• Harmonising transfer prices
• Digitalising and monitoring transfer prices
• Potential ways of mitigating liability
  • Transfer pricing CMS
  • Risk control matrix
  • Tax compliance management processes
  • Certifications in accordance with IDW
  • Process documentation

Publications on transfer pricing can be found here.