Transfer Pricing
The explosive growth in world trade in recent years, and the resulting increase in cross-border transactions between related parties, has catapulted transfer pricing to the forefront of important international tax issues. MNCs of all sizes are finding their transfer pricing practices under increased scrutiny by tax authorities. Extensive transfer pricing regulations for Pakistan are in place according to which an arm’s length standard is applied on transactions between associates.
Transfer pricing has become the most difficult area of international taxation. We advise multinational companies on the most appropriate transfer pricing policy to be followed in accordance with the Income Tax Ordinance, 2001 and Income Tax Rules, 2002.
Our approach is marked by innovation and the resulting policy is one that is the most practical. It focuses on prices charged for related – party transactions, including inter – company transfer of tangible goods, intangible property services, loans and leases. It affects nearly every aspect of multinational operations - R&D manufacturing, marketing and distribution, after-sale services, and of course, an organization’s worldwide tax burden.
Potential issues
- You need help and guidance with documentation
- The taxation authorities are investigating your approach to transfer pricing
- You want to coordinate your worldwide transfer pricing policies
- You are looking for coordinated transfer planning advice
How A. F. FERGUSON & CO. can help
- Detailed functional analysis of selected entities and related industry analysis
- Comparables and benchmarking analysis exercises
- Representation before tax authorities for transfer pricing audit defense
- Management of international transfer pricing projects from Pakistan perspective
