Most of the multinational firms need to account for the unprecedented complexities, regarding international taxation and relevant regulations. The willingness of a parent company to allocate assets and liabilities uniformly, to handling rising volumes, has evolved into one such complexity that must be accounted for with Transfer Pricing.
In most cases, transfer pricing needs to be handled with discretion, as the international enforcements have taken gigantic forms. Most importantly, the global financial landscape has also metamorphosed, courtesy of the evolved BEPS standards, which now empower the government to keenly observe the issues related to tax avoidance.
Transfer pricing comes across as strategic risk mitigation and management tool for most businesses. Global objectives and operations often require a liability distribution, which eventually validates the importance of a transfer pricing plan. While every company has a specific intercompany pricing module, the evolution of stricter enforcement practices from the concerned authorities is now making organizations opt for third party services for getting the documentation right.
Companies that make use of credible and compliant transfer pricing techniques are better equipped when it comes to lowering shipping costs. With different segments of the same company exchanging services and products, transfer pricing helps reduce the tariff rates, even if they concern movement across international waters.
Easier said than done, to initiate transfer pricing in a holistic and rewarding manner, companies require efficient services, best used for preparing documents and disclosures. Moreover, with companies operating across diverse countries, country-to-country financial reporting is also an essential aspect that companies must concentrate on.
With several guidelines, disclosures, and documentations to adhere to, multinational companies might find it transfer pricing trickier to include as a financial risk manager. With IMC willing to help, it becomes easier to comply with the master file, country-by-country reports, local documentation, and other transparent practices related to transfer pricing.
At IMC, we make sure that the company abides by all the international tax-based standards, in a risk-free, efficient, and compliant manner. We help companies by assessing their tax and transfer based movements while keeping the country-centric documentation and thresholds in mind. Besides that, we conduct in-depth research and analysis of the existing assets and liabilities pertaining to the supply chain, to simplify transfers further.
Lastly, we also take care of the detailed process of documentation, where we approach every transfer depending on the country of origin. Our existing transfer pricing and country-by-country reporting services include:
- Handling local audits
- Paying attention to the country-centric duty acts
- Dispute resolution
- Working alongside the Competent Authority
- Optimizing the Business Model
- Documenting local file based on the local tax regulations
- Assistance with foreign documentation
- Advance agreements regarding price negotiations
- Mutual Agreements
- Treasury planning
- Post-implementation review
- Stress testing based on existing documents
- Dispute avoidance
- Obtaining double tax and other associated benefits for the parent company
- Handling pricing adjustment
- Striving for the ETF or Effective Tax Rate
- Assessment, Analysis, and Documentation
- Master file development
Our professionals understand that the taxation and associated rules apply differently to transfer pricings and are quite complex in nature. Moreover, with government officials looking to conduct audits to identify loopholes, the process becomes all the more stressful. This is where professional help comes in as we help companies develop policies that can maximize after-tax profits while minimizing penalties and adjustments.
We also initiate cross-checks, provided the documentation has already been prepared. Our clear understanding of the company framework, frequent supply chain operational changes, and the local tax obligations make us the best at what we do.