Description
An aggressive market strategy is important to successfully growing a business in any new global market. But, when this strategy doesn't coincide with the often intricate policies of the local tax authorities, profit margins and even the overall business strategy of your company could be at risk.
Because that's a risk you can't afford to take, Global Transfer Pricing Solutions walks you through innovative strategies that will help you build an effective transfer pricing policy ... and build your market share as well.
Prepared by experienced practitioners at major law and accounting firms and senior international transfer pricing professionals at the largest multinationals, this one-of-a-kind resource brings you a wide range of tools and techniques important to your transfer pricing strategies in Asia, Europe, Latin America, Russia/Eurasia, and North America.
The articles in this Special Report were originally published in WorldTrade Executive’s Practical Asian Tax Strategies, Practical International Tax Strategies, Practical Latin American Tax Strategies and Latin American Law and Business Report. It is important to apply information in these articles in the context of any recent amendments to the laws and regulations they discuss. This report is intended to provide guidance in understanding legal and practical conditions, but it does not constitute legal advice.
Table of Contents
OVERVIEW
The Trend Toward Global Tax Transparency:
Global Tax Enforcement and the Implications for Multinationals
Mark Weinberger (Ernst & Young)....page 11
Transfer Pricing Still Most Important Global Tax Issue:
For Both Government and Multinational Enterprises (MNEs) around the World
Ernst & Young...page 19
Multinational Business Strategies and Transfer Pricing in a Global Marketplace
Martin Pryzsuski, Srini Lalapet, & Hendrik Swanveld (BDO Dunwoody)...page 25
Using Regression Analysis in the Transfer Pricing Process
Martin Pryzsuski, Hendrik Swaneveld, Pallavi Paul,
Charles Osoro & Srini Lalapet (BDO Dunwoody)...page 47
Recognizing the Added Value Created by Incremental Innovation
Martin Przysuski & Srini Lalapet (BDO Dunwoody)...page 71
Procedural Aspects: APAs and Other Administrative Solutions
to Global Documenation Requirements
Paul B. Burns (FTI Consulting)...page 81
IP and Cost-Sharing Agreements: Resolving Tax Issues Involving Intellectual Property
Daniel McSwitney & Brian Burt (KPMG)...page 93
(Also see Cross-Border Related Party Intangibles Transfers
Kevin Rowe and Jack Cummings (Alston & Bird LLP)....page 425)
ASIA/PACIFIC
Companies Appear to be Missing a Strategic Business Opportunity to Use Transfer Pricing in Asia:
Conflict between Customs and Transfer Pricing Remains High
Ernst & Young....page 101
Transfer Pricing Enforcement in India: Implication for US Companies
Richard Barrett, Shyamal Mukherjee, and Tarun Arora (PricewaterhouseCoopers)...page 119
Transfer Pricing in India and Japan: Approaches Differ and Controversy Remains
Martin Przysuski (DBO Dunwoody)...page 125
India’s Stringent Views on Transfer Pricing: High Value Services Targeted for Review
Vispi T. Patel & Vishwanath Kane (Deloitte Haskins & Sells)...page 141
The New Chinese APA Implementation Rules:
A Milestone in Chinese Transfer Pricing
Martin Pryzsuski & Srini Lalapet (DBO Dunwoody)...page 145
Taiwanese Transfer Pricing Rules:
Recent Announcement by the MOF Modifies Disclosure Requirement
Peter Ni and Peter Su (Asua Business Group, Ernst & Young)...............................................................................page 151
Transfer Pricing:
Will the Australian Tax Office be Targeting Your Company
Stuart Edwards (PricewaterhouseCoopers)...page 155
Vietnam Update: Transfer Pricing Overview, Import Duty Exemption and More
Fred Burke and Nguyen Thanh Vinh (Baker & McKenzie, Vietnam)...page 157
The Tightening of Transfer Pricing Enforcement In Japan and How to Deal with It
Jiro Morikazu (Shin Nihon Ernst & Young, Tokyo)...page 165
The Battle Over Treatment of Intercompany Services by Japan and U.S. Tax Authorities
Steven D. Harris, Makoto Nomoto and Barabara J. Mantegani (KPMG)...page 169
The Changing Transfer Pricing Environment in China
Steven Tseng, KPMG Huazhen (China) and Steven D. Harris, KPMG LLP (U.S.)...page 179
What Can be Learned from the Recent China/US APA?
What are the Implications for Singapore Firms?
Senaka Senanayake and Jesper Solgaard (Ernst & Young, Singapore)...page 185
Transfer Pricing in Singapore (Part 1):
The Arm’s Length Principle
George H. Boerger, Esq...page 189
Transfer Pricing in Singapore (Part 2):
Documentation, Mutual Agreement Procedures and Advance Pricing Agreements
George H. Boerger, Esq...page 195
EUROPE
The Development of Intangibles: Intellectual Property Rights from a Transfer Pricing Perspective
Isabel Verlinden, Axel Smits, & Bart Lieben (PricewaterhouseCoopers)...page 207
Finding Transfer Pricing Comparables:
Use of “Secret Comparables” in France, Germany and the Netherlands
Martin Przysuski (DBO Dunwoody)...page 241
Germany Issues New Transfer Pricing Guidelines
Jobst Wilmanns and Holger Lorenzen (PricewaterhouseCoopers)...page 245
Denmark Tightens Transfer Pricing Law:
Changes Focus on Documentation Practices
Klaus Okholm, Jorgen Juul Andersen, Katrine Drachmann,
Christina Lassen, Asger Mosegaard Kelstrup, Jakob Berning, and Kristen Kamp (PricewaterhouseCoopers)...page 251
Transfer Pricing Under Portuguese Law:
Offshore Entities Deemed to be Related Parties
Tiago Marrieros Moreira (Vieira de Almeida)...page 253
Qualifying for the Lower Irish Corporate Tax Rate and
Setting Defendable Transfer Pricing Policies
Mary Honohan & Gavin Ryle (PricewaterhouseCoopers)...page 257
Russian Transfer Pricing Rules
Konstantin Yurchenko and Natalia Valkovskaya (KPMG Ltd.)...page 261
German Tax Authorities Pave the Way
for More Advance Pricing Agreements
Stephan Schnorberger (Baker & McKenzie)...page 265
Bill on Documentation Requirements for Transfer Pricing before Swedish Parliament:
Proposed Legislation Would Go into Effect in January, 2007
Mats Emanuelsson and Lars Jernkrok (Deloitte AB)...page 271
VAT Treatment of Transfer Pricing Adjustments in the Czech Republic
Martin Kopecky (Baker & McKenzie)...page 275
LATIN AMERICA
Learning From Ten Years of Transfer Pricing History in Brazil
Antonio Amendola (Felsberg and Associates)...page 283
“Practical” Notes on Regional Transfer Pricing in the Americas
Marc M. Lewis (Sony)...page 293
Tax Alternatives for Maquiladoras:
Waiving APAs
Jaime González-Béndiksen (Baker & McKenzie)...page 297
Mexican Transfer Pricing Rules
Jorge Narváez (Baker & McKenzie)...page 299
Mexican Tax Service Publishes New Standards
Moisés Curiel, Carlos Linares and Eduardo Mendez (Baker & McKenzie)...page 311
Argentine Transfer Pricing Regulations Should Not Compel You
to be a Witness Against Yourself
Daniel Rybnik (Enterpricing)...page 315
Argentine Revenue Service Amends Transfer Pricing Regulations
Cristian Rosso Alba and Silva Guadalupe Catinot
(Rosso Alba, Francia & Ruiz Moreno)...page 321
Misunderstanding Transfer Pricing Control Rules in Brazil
Lionel Bonner Nobre (BDO, Seidman LLP)...page 329
Amendments to Brazil’s Transfer Pricing Regulations
for Export Transactions Carried in 2006
Marcos VinÌcius Passarelli Prado and Clarissa Machado (Trench, Rossi e Watanabe Advogados)...page 335
NORTH AMERICA
Preparing Transfer Pricing Documentation for Canada
Martin Przsuski and Srini Lalapet (BDO Dunwoody)....page 341
Advanced Pricing Arrangements for Small Business?
Dale Hill (Gowlings)....page 395
Management Fees and Other Intragroup Service Charges:
The Pandora’s Box of Transfer Pricing
Martin Przysuski (BDO Dunwoody)....page 397
Documenting Cross-Border Guarantees:
Transfer Pricing Relief for Canadian Parents and their Foreign Subsidiaries
Chris Van Loan (Blake, Cassels & Graydon)...page 415
Cross-Border Cash Management:
Inter-Company Arrangements and Canadian Tax Consequence
Kathleen Penny (Blake, Cassels & Graydon)....page 419
Cross-Border Related Party Intangibles Transfers
Kevin Rowe and Jack Cummings (Alston & Bird LLP)...page 425
Postponement of Compliance Deadline Means More Time for Planning
Jeff McFarland (RSM McGladrey)...page 429
IRS Updates Competent Authority Procedures
Todd B. Reinstein (Pepper Hamilton LLP)...page 433
IRS Postpones Effective Date for Rules on Low-Margin Services:
Other Services Must Comply with New Regime
Carolyn Fanaroff (Greenberg Traurig, LLP)....page 435
IRS Issues Additional Guidance Regarding Transfer Pricing Rules
Governing Intercompany Services
Anthony Curtis, Sean O’Connor, Rich Barrett and Kevin McCracken (PricewaterhouseCoopers)...page 439
Canada Transfer Pricing:
Avoiding Audit “Triggers”
Dale C. Hill and Jamal Hejazi (Gowling Lafleur Henderson, LLP)...page 443
Managing Transfer Pricing:
Preparing for a Section 482 Audit
Steve Snyder (Navigant Consulting)...page 447
Companies Must Act Promptly to Comply with New Intercompany Services Regulations:
Most Multinational Companies Will Be Affected
Bernhard von Thaden, Eric Ryan, David Colker, and Brian Andreoli (DLA Piper Rudnick Gray Cary)...page 455
Canada Revenue Agency Revisits Transfer Pricing Review Committee
Tony Anderson, Sandra Goldberg and Gary Zed (Deloitte and Touche LLP)...page 461
Simplified Transfer Pricing Rules for “Black Office” Services
Temporary Regs Under Section 482 Provide New Method for Treating Accounting and Payroll
Joan M. Roll (Pepper Hamilton LLP)...page 465
Katherine Dimancescu
WorldTrade Executive
WorldTrade Executive Inc. (WTE) provides business, legal, and financial executives the advice they need to operate successfully in international markets. Leading executives from around the world rely on WTE’s newsletters, special reports and consulting expertise to stay on top of tax, regulatory and economic developments affecting their firms and industries. The success of these publications has enabled WTE to build an unsurpassed network of in-country advisors with the contacts and know-how to track down specific company and industry data. WTE’s editorial contributors are top international lawyers, accountants, and company managers.. Articles are tailored for a sophisticated audience of international lawyers, accountants, and business managers, and provide practical solutions to the real problems faced by corporate decision-makers. WTE brings you the strategies that your competitors and colleagues use to succeed in international transactions.
