Tax lawyers and transfer pricing

May 25th, 2015Featured0 comments

Our lawyers advise you on justification and design of transfer pricing in operations within linked entities both national and international

Transfer pricing are the prices which are set by two companies which are part of the same business group whereby they will transfer goods, services and benefits. This way, transfer pricing don’t follow market economy rules, related to supply and demand, because they can be marked at a higher, lower or equal level to the market price.

The governing rules in these deals try to approach to those prices which would be set to transfers with independent companies, therefore, according to market value. These rules make possible Inland Revenue Agencies to adapt transfer pricing to market price. The aim is to avoid related companies to increase their deductions or decrease their income to contribute less to the Public Purse by manipulating prices.

To develop the right design and handling on operations between linked entities legally bound to pricing transfer will allow us the proper tax optimisation and tax statement according to the Arm´s length principle.

This Arm’s length principle” has been adopted by most world economies and, specially, by the Organization for Economic Co-operation and Development (OECD). This last organization has developed, among other measures, various mechanics to prevent conflicts between countries and promote a cooperation climate, which is basic because we are facing a completely international phenomenon.

In Evolutiza Lawyers & Tax Advisors, we have extensive experience in advising on transfer pricing. Do not hesitate to contact us.

We are a Spanish law firm with branches Chile, Peru, El Salvador, United Kingdom and Switzerland devoted to business.

We are specialist in corporate law, international taxation, contracts, taxes, IP, transfer pricing and finance.

Call us on 0034 911 697 113 or email us on info@evolutiza.com.es

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