Transfer pricing
Transfer pricing
Transfer pricing is cited by decision-makers in capital groups as one of the most significant risk elements in the area of taxes. At the same time, transfer pricing can also be a useful business tool in effective management
At Enodo Advisors, we truly understand that the aspect of transfer pricing should be considered not only from the perspective of risk management but also as an element of conducting business by related entities. We focus on ensuring that transfer pricing supports the business operations.
We offer a full range of services in transfer pricing. We do not focus solely on preparation of the mandatory transfer pricing documentation in accordance with the requirements of Article 11k and 11q of the CIT Act and Article 23w and 23zc of the PIT Act. Transfer pricing documentation constitutes only one element of effective transfer pricing management.
The most important areas of activity and expertise
The issue of transfer pricing is international in its nature. Therefore, in our work, we take into account the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. At the same time, we consider the approach to transfer pricing issues presented by the tax administration in Poland and in other countries where the parties to the controlled transactions are based.
| Transfer pricing policy | Design and implementation of tax-safe transfer pricing policies taking into account a business nature of transactions. |
| Transfer pricing documentation | Preparation of local transfer pricing documentation (i.e., Local File) in accordance with the requirements of Article 11k and 11q of the CIT Act and Article 23w and 23zc of the PIT Act. Preparation of group documentation (i.e., Master File) based on Article 11p of the CIT Act and Article 23zb of the PIT Act, as well as adapting clients’ existing documentation to the needs and requirements of Polish tax regulations. |
| Benchmarking studies | Preparation of benchmarking studies aimed at determining or verifying the arm’s length level of price in controlled transactions. We prepare benchmarking studies for all types of transactions (financial, service, goods, and those related to intangible assets) |
| Settlements of intra-group transactions | We prepare the principles for intra-group transaction settlements. We support the selection of the most appropriate transfer pricing calculation method from a tax and business perspective. We assist in determining a cost base that forms the basis for remuneration calculation, including the selection of appropriate cost allocation keys. We create agreements and internal documents regulating the principles of intra-group transaction settlements. We prepare procedures for collecting evidence of service provision in the case of transactions involving intangible services. |
| Assessment of restructuring activities | The assessment is made, among other things, from the perspective of potential taxation or charges related to the transfer of intangible assets, so-called profit potential, or other elements of value. As part of the assessment, we check the validity of introducing the so-called exit fee and analyze its arm’s length level. We verify whether the undertaken restructuring actions meet the criteria of the definition of restructuring according to transfer pricing regulations. |
| Permanent Establishment | We deal with the topic of attributing income to Permanent Establishments. We support in selecting tax-safe methods for attributing income to Permanent Establishments, including capital allocation and settlements with the head office. |
| Advanced pricing agreements | We support the decision-making process regarding the submission of an Advance Pricing Agreement (APA) application. We verify the validity and feasibility of submitting an application for a given transaction. We assist in the preparation and submission of the application and in processing of the application by the tax authorities. |
| Advisory during disputes | We provide advice during disputes with tax authorities – we provide support during tax inspections and tax proceedings. |