Nexus has developed a team of economists dealing with transfer pricing issue.
Nowadays, such issue has become one of the main international tax planning tool, due to increased tax laws standardization process carried out by the main States, on one hand and, on the other hand, the non discrimination principles implementation at EU level.
As a result, it can be observed both an increased attention paid by the tax authorities from around the world to this subject matter and a swift evolution of the main jurisdictions’ fiscal laws that, not only have better detailed the arm’s length principle application criteria but have provided specific documentation obligations as a condition for intercompany costs and revenues tax recognition.
Our company assists the enterprises in the transfer prices determination by mean of transfer pricing studies based on OECD’s guidelines. In particular such studies include:
- functional and risk analysis of each party involved in the controlled transaction;
- economic analysis, aimed at indentify subjects comparable, in term of functions carried out, risks borne and assets used, to the transaction’s tested party.
With specific reference to Italy, the transfer pricing documentation regulation (as introduced by art. 26 of the Decree n. 78) provided for the so called “penalty protection” in case of adjustment to the applied intercompany prices from which it arose an increased tax due or a lower tax credit. The penalty protection is applicable if the taxpayer, during the access, inspection of verification or during any other inspective activity, delivers to the tax inspectors the specific documentation provided by the so called “Provvedimento” issued by the Italian Revenue Agency’s Director on September 29, 2010, suitable to allow the verification of the applied transfer prices’ compliance with the arm’s length principle.
More particularly, the documentation must include:
- the so called National Documentation: it contains all the information regarding the transctions of a single enterprise and, if applicable
- the so called Masterfile: it collect all the information regarding the multinational group transactions and it must be prepared only with reference to such companies that control at least one non resident company (so called “holding” or “sub-holding”).
Nexus can assist its clients in the preparation of the suitable documentation under the new regulation.
Further to complete transfer pricing studies, Nexus can provide the enterprises with:
- professional opinions on specific transfer pricing policies
- assistance for the drafting of corporate bodies’ resolutions on intercompany transaction subject matter
- assistance for the drafting of cost sharing / cost contribution agreements
- assistance for the drafting of intercompany agreement for specific services, management or licence provision etc.
- assistance in during the bargaining process and in preparing the documentation necessary for the conclusion of Advance Pricing Agreement with Tax Authorities
- assistance in case of transfer pricing tax audit;
- assistance in transfer pricing tax litigation
- cooperation with administrative personnel in the preparation of internal procedures and policy for the transfer pricing quantification.