Consultation in the preparation of transfer pricing documentation

How to prepare transfer pricing documentation? Where to start? How to avoid mistakes?

Companies resolve issues related to the preparation of transfer pricing documentation in several ways:

1. They contact audit firms and order a full package of services. The cost of services depends on key factors: the number of controlled transactions, the number of contracts, the average number of product/service items, etc. You can calculate the cost here
2. They prepare the documentation on their own, without involving external resources.

 

Today, every second large enterprise in Ukraine decides to prepare the documentation independently. Firstly, such companies already have their own financial department, usually consisting of 20 to 50 people. Secondly, there is an opportunity to save money: many business owners believe that their accounting department can handle the task independently.

However, the absence of transfer pricing specialists on the company’s staff can have a very negative impact on the project results. For such cases, transfer pricing specialists of the Audit-Invest audit firm are ready to provide any consultations on emerging issues. This enables the company’s specialists to save the company’s financial resources, complete the project within a short timeframe, and be confident in the correctness of the work performed.

 

1. Assistance in conducting an inventory of business transactions in order to identify controlled transactions.

As a result, you will be able to:

• Identify opportunities to optimize the structure of intragroup agreements in order to simplify the analysis and justification of prices in controlled transactions in the future;
• Prepare a register of controlled transactions for the established period;
• Determine the list of transactions with unrelated counterparties, the prices of which can be used as transactions with comparable conditions.

 

2. Consulting on the development and adaptation of internal regulations at the enterprise to control compliance with transfer pricing legislation (transfer pricing policy)

As a result, you will be able to:

• Develop a procedure for identifying controlled transactions;
• Determine the criteria for comparability of transactions, taking into account the specifics of the company’s business activities;
• Select and justify the method for determining the price (profitability), and prepare an algorithm for its application;
• Establish sources of information that may be used by the company, taking into account the specifics of its activities;
• Develop a procedure for preparing documentation to confirm the price (profitability) of a controlled transaction.

 

3. Consulting on the independent preparation of documentation for controlled transactions (transfer pricing documentation)

As a result, you will be able to:

• Determine the criteria for comparability of transactions, taking into account the specifics of the company’s business activities;
• Select and justify the method for determining the price (profitability), and prepare an algorithm for its application;
• Determine sources of information that may be used by the company, taking into account the specifics of its activities;
• Prepare information on comparable transactions with unrelated parties;
• Determine the market price range (profitability range) according to the price calculation method selected by the company;
• Prepare justification for the level of the contractual price;
• Prepare a full package of documents for submission to the controlling authority.