© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Transfer Pricing
Posted 1st July 2016

Transfer Pricing

BDO is an international network of public accounting, tax and advisory firms which perform professional services under the name of BDO. We have representation in 157 territories, with 64.300 people working out of over 1.400 offices worldwide.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Transfer Pricing
Image

BDO is an international network of public accounting, tax and advisory firms which perform professional services under the name of BDO. We have representation in 157 territories, with 64.300 people working out of over 1.400 offices worldwide.

Our distinctive reputation for maintaining close relationships with our clients is built upon our commitment to all our stakeholders that what matters to them also matters to us. We work with our clients to define what exceptional client service means to them and we always aim to bring insight and up-todate thinking so that they can meet their objectives.

As an international accounting, tax and advisory firm, we provide all relevant services to businesses worldwide. We therefore can provide our client with tailor made services in a wide range of industries.

With respect to transfer pricing, we assist our clients in all aspects. This includes value chain tax structuring, preparation of transfer pricing documentation, provision of benchmark studies, dispute resolution and advance pricing agreements with the tax authorities.
Through our international network we are able to assist clients on a global scale, with the personal and pragmatic BDO approach our clients expect from us. This means that we maintain a close relationship and take the aspects that are most relevant for our clients as a starting point.

The Transfer Pricing Market

Transfer pricing is becoming increasingly important every day. Following the Base Erosion and Profit shifting (BEPS) project of the OECD and G20, businesses worldwide are facing new, more stringent approaches towards transfer pricing. Although at first this can be perceived as an additional burden and compliance costs, we believe these developments present opportunities for our clients both from a tax control as well as from a transparency perspective towards the stakeholders.

The BEPS project resulted in various recommendations towards the OECD member states, specifically towards how documentation should be prepared. These recommendations are also followed by various non-OECD countries. For companies, a global implementation of these recommendations results in a more uniform approach towards transfer pricing. This should significantly lower the burden and tax uncertainty in this respect.

The public domain has become critical towards companies with specific setups and relative tax burdens. A solid transfer pricing model can help prevent negative views on the company’s situation in this respect. Companies that have a transfer pricing model that is aligned with the business model remain in control, which significantly lowers their risks and uncertainty of their tax position, e.g. double taxation and penalties. Ultimately, this allows them to focus on what they can do best: running their business.

Knowing that your transfer pricing model is solid, the client is better able to manage and monitor budgets with the final results which leads to the fact that your annual accounts are correct and thus your tax returns are accurate. This limits the risks of discussions with local tax authorities and increases the level of control. Furthermore, with respect to a possible business model restructuring or merger, having an up-to-date transfer pricing policy reduces the risk that any changes or differences might have an impact on the transfer pricing policy without any notice.

Finding the right TP adviser

Due to the increased scrutiny by tax authorities along with new documentation requirements, and envisaged new regulations in the future, being in control of your transfer pricing is very important. It is therefore very important that the TP adviser knows the needs of the client and can anticipate on global transfer pricing developments.

Transfer pricing should have an international approach, whereby specific local regulations play a significant role. A one sided approach or advice from an adviser that does not have sufficient experience or a global network could do more harm than good.
Choosing an adviser that is involved, has an extensive network and is on top of new developments is therefore crucial.
Transfer pricing should be aligned with the business.

Since transfer pricing is very specific to each situation, there is no one-size-fits-all approach that can be applied. Each business needs to be analysed and the situation assessed to determine the most applicable transfer pricing model and thus arm’s length pricing. It is our experience that businesses sometimes have a different approach in this regard than what tax authorities are expecting to see.
Without solid advice and support, a company can think they have a solid transfer pricing model and substantiation, but in fact do not meet the requirements as imposed by local law and tax authorities. In addition, although the international community is seeking for more coherence, unilateral measurements can have a big impact on local compliance.

The Future

International business keeps growing and cross border intercompany transactions will increase significantly. BDO has a strong leadership in the Mid-market and has a growth strategy focussing on corporate clients doing business in different countries.International structuring cannot be achieved without proper value chain analysis and transfer pricing documentation. Therefore, being in control of transfer pricing is key priority for multinational enterprises. We have a strong international network that has much experience in dealing with these type of companies. Within BDO global I am part of the Transfer Pricing Centre of Excellence, assisting with global transfer pricing challenges, further expansion of the network and facilitating best practices towards other BDO member firms. With this network we have the right resources for building and maintaining client relationship which to us is of key importance and providing the clients with services they need.

Company: BDO Nederland
Name: Sjoerd Haringman
Email: sjoerd.haringman@bdo.nl
Web: www.bdo.nl
Address: K.P. van der
Mandelelaan 40, 3062 MB, Rotterdam

Phone: 010 242 4600

 

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
Innovative Bites Acquires Hancocks
M&A
13/04/2017Innovative Bites Acquires Hancocks

Confectionery powerhouse Innovative Bites has today, Wednesday 12 April 2017, acquired Hancocks Holdings, the UK’s leading supplier of wholesale sweets, from H2 Equity Partners and management.

Read Full PostRead - Eye Icon
Ringier Africa Deals Group Acquires Nigerian Online Shopping Platform DealDey
Finance
23/03/2016Ringier Africa Deals Group Acquires Nigerian Online Shopping Platform DealDey

Ringier Africa Deals Group, a newly-founded joint venture between Swiss Ringier Africa AG and South African Silvertree Internet Holdings (Pty) Ltd, today announces it has acquired one of Nigeria’s biggest online shopping platforms, DealDey.

Read Full PostRead - Eye Icon
Safeguarding Small Enterprises: Navigating the Landscape of SME Cyber Threats
News
30/11/2023Safeguarding Small Enterprises: Navigating the Landscape of SME Cyber Threats

In the dynamic realm of business, Small and Medium-Sized Enterprises (SMEs) are not immune to the pervasive and evolving threats posed by cybercriminals. A recent study by Sharp UK reveals a concerning statistic – a huge one-third of UK SMEs lack any sec

Read Full PostRead - Eye Icon
Innovation in Mortgage: How CRM Solutions Drive Change
News
29/08/2023Innovation in Mortgage: How CRM Solutions Drive Change

Innovation in Mortgage: How CRM Solutions Drive Change The mortgage industry is ripe for innovation, and customer relationship management (CRM) solutions are at the forefront of driving this change. The use of CRM solutions by mortgage lenders has revolutioniz

Read Full PostRead - Eye Icon
React Best Practices 2023: What Every Developer Must Do
News
23/06/2023React Best Practices 2023: What Every Developer Must Do

A well-liked JS library for creating user interfaces is React. Developers must keep current on the most recent best practices to build effective and maintainable code as technology continues to advance.

Read Full PostRead - Eye Icon
Seeing Advantages Where Others See Obstacles.
News
20/06/2023Seeing Advantages Where Others See Obstacles.

The family owned and operated business Custom Recycling has been awarded the title of South Carolina's Best Scrap Metal Recycling Company 2023.

Read Full PostRead - Eye Icon
Copyright Litigation- UK Trends
Leadership
20/11/2015Copyright Litigation- UK Trends

Ashfords is recognised nationally as a leading provider of legal and related professional services. Tom Phipps talks us through trends in the copyright litigation sector.

Read Full PostRead - Eye Icon
4 Basics of Boosting Employee Morale
Leadership
15/11/20224 Basics of Boosting Employee Morale

Behind any organization and company's success is a team of happy, healthy, and satisfied employees. Any business with high employee morale tends to enjoy a healthy work culture and well-engaged employees and won't have any problem sourcing or attracting the be

Read Full PostRead - Eye Icon
A10 Networks  Files for IPO
Innovation
15/04/2015A10 Networks Files for IPO

We take a look at A10 Networks’ IPO in March of last year. A10 Networks has pioneered a new generation of application networking technologies.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow