Technical Transfer Pricing Study
The Transfer Pricing Study is how the taxpayer can demonstrate that agreed his transactions with related parties residing abroad under the Arm’s Length Principle.
The study is composed of three fundamental parts such as the Functional Analysis, Economic Analysis, and Conclusions.
The Functional Analysis is a description of the operating and functional characteristics of the company, its assets used, and the risks it incurs. Regarding this information, the economic analysis is performed for each type of transaction, which is analyzed through one of the different methods indicated by the legislation of each country, where a group of potentially comparable companies or transactions is selected, and a range of profit margins or considerations is determined.
The result is compared with the aforementioned range and is concluded whether the transactions analyzed are carried out like those that would have been carried out with or among third parties in comparable situations.
The countries that currently require the preparation and filing of such Technical Study are the following:
Our Firm has a wide experience, in addition to a multi-disciplinary team and first-class technology, which guarantees a final high-performance product that duly supports the Transfer Pricing Study required by the tax authorities.