What is transfer pricing?

Transfer pricing is the pricing of international transactions within a multinational company. It is important that the various parts of this company act at arm's length. Transfer pricing provides rules for determining transfer prices for trade in goods, services, royalties and loans between various affiliated group entities.

Transfer pricing is a risk for multinationals

Transfer pricing is one of the biggest risks that a multinational company can face today. Tax authorities worldwide are increasingly aware of the importance of transfer pricing for their tax revenues. For this reason, the Organisation for Economic Co-operation and Development (OECD), the European Union and the United States, among others, are issuing more and more extensive international guidelines. Various countries are also introducing increasingly strict national rules. These rules have led, among other things, to additional tax assessments for large companies such as Google, Amazon and Apple.

The same rules are of great importance for every multinational company. As a multinational company you must be able to demonstrate that you comply with the various imposed obligations and rules with regard to transfer pricing to reduce the risk of additional assessments and fines.

Optimise your tax position

ABAB International has advisors specialised in transfer pricing with solid experience in guiding multinational companies. We know exactly how to meet your transfer pricing obligations, both within the European Union and worldwide. We analyse the actual situation within your company, any intended restructuring and the relevant regulations. Based on this, we advise on the actions required to optimise your tax position.

Our services include:

• preparing the mandatory documentation;
• carrying out comparability analyses (benchmarking);
• avoiding double taxation;
• concluding a ruling (Advance Pricing Agreements) with the tax authorities to obtain certainty in advance.

More information

Would you like to know more about transfer pricing? Please contact Jeroen Geerts, tax advisor, on telephone number 013-4647288 or send Jeroen an email.