Transfer Pricing

Transfer pricing is one of the most difficult areas of tax law. Regulations on transactions between related parties are designed to ensure that the prices set reflect market conditions and do not lead to tax avoidance. In this context, the transfer pricing adjustment becomes an important tool to bring tax settlements in line with actual economic conditions. It is worth understanding exactly what transfer pricing adjustment is, under what circumstances it can be applied and what risks are associated with it.

In today’s global business environment, transactions between related parties are the order of the day. As a result, tax authorities are increasingly focusing on controlling transfer pricing to prevent erosion of the tax base and shifting of profits to lower-tax jurisdictions. One of the key responsibilities of companies is to prepare appropriate transfer pricing documentation within certain deadlines. In this article, we will outline the most important deadlines related to transfer pricing documentation and tips on how to prepare for them.