In the current context, the regulations in matters of transfer prices are becoming more stringent and preponderant for multinational companies, since the application of these rules could affect the competitive and financial position of an organization. In the Latam region, the first regulations of transfer prices were issued in Mexico and Argentina, followed by the rest of the South American countries in a gradual manner (with a few exceptions). In Central America, the first legislation was pronounced in Panama in the year 2010, and in the following years the other countries began to decree tax regulations on this subject.
Regarding to the methods used to determine the market value of intercompany transactions, most countries rely on the “OECD Guidelines applied in matters of Transfer Prices for Multinational Enterprises and Tax Administrations”; Which provide guidelines for the application of the ‘arm’s length principle’ which constitutes the international consensus on transfer prices, that means, on value, at fiscal effects, of international operations between associated companies.
TPC Group, offers a range of services related to intercompany transactions to customers throughout Latin America and Spain. The experience gained in the different sectors: mining, industrial, commercial, manufacturing, services, fishing, energy, construction, transport, tourism, financial, educational, forestry, among others; Strengthens our economic knowledge of the market and its environment.
Our global best practices and advice have helped various organizations reduce their risk in front of tax reviews and audits. The ability for analysis in each transaction, understanding of the internal and transnational rules, as well as the correct interpretation of the OECD Guidelines, are strengths obtained during these more than 12 years of presence in the region.
Our leadership and quality, added to the trust our customers have placed on us, have led us to reach new levels and to reaffirm our commitment to continue evolving in favor of our customers, employees and society in general.