In the current context, transfer pricing regulations are becoming increasingly stringent and preponderant for multinational companies, as the application of these rules could affect an organization’s competitive and financial position. In the Latin American region, the first transfer pricing regulations were issued in Mexico and Argentina, and subsequently and gradually they were incorporated in the other South American countries (with some exceptions). In Central America, the first legislation was passed in Panama in 2010, and in the following years, the other countries began to enact tax regulations on this subject.
Regarding the methods used to determine the market value of intercompany transactions, most countries are based on the “OECD Guidelines on Transfer Pricing for Multinational Enterprises and Tax Administrations”; which provide guidelines for the application of the “arm’s length principle” that constitutes the international consensus on transfer pricing, that is, on the valuation, for tax purposes, of international transactions between associated companies.
TPC Group offers a range of services related to intercompany operations to clients throughout Latin America and Spain. The experience gained in different sectors: mining, industrial, commercial, manufacturing, services, fishing, energy, construction, transport, tourism, financial, education, forestry, among others, strengthens our economic knowledge of the market and its environment.
Our global best practices and advice have helped various organizations reduce risk in the face of tax reviews and audits. The analytical capacity in each transaction, understanding of internal and transnational rules, as well as the correct interpretation of the OECD Guidelines, are strengths obtained throughout these more than 12 years of presence in the region.
Our leadership and quality, added to the trust that our customers have placed in us, has led us to reach new levels and to endorse our commitment to continue evolving in favour of our customers, collaborators and society in general.