The explosive growth in world trade in recent years, and the resulting increase in cross - border transactions between related parties, has catapulted transfer pricing to the forefront of important international tax issues. MNC’s of all sizes are finding their transfer pricing practices under increased scrutiny by tax authorities. Some transfer pricing regulations for Pakistan are in place and more considered to be introduced in the near future. Presently, under the fair value concept, arm’s length standard is applied on transactions between associates.
Our approach is marked by innovation and the resulting policy is one that is the most practical. It focuses on prices charged for related – party transactions, including inter – company transfer of tangible goods, intangible property, services, loans and leases. It affects nearly every aspect of multinational operations - R&D manufacturing, marketing and distribution, after-sale services, and of course, an organization’s worldwide tax burden.
Our range of services in the area of transfer pricing includes:
- Detailed functional analysis of selected entities and related industry analysis
- Comparables and benchmarking analysis exercises
- Representation before tax authorities for transfer pricing audit defense
- Management of international transfer pricing projects from Pakistan perspective