Transfer Pricing

RED advises a broad range of multinationals, from start-ups to listed groups and private equity groups. Our firm has a base of more than 150 clients, including corporates with a global presence and some of the biggest companies established in the Netherlands.

Failure to comply with transfer pricing requirements can create significant financial and reputational risks. Developments in this area follow each other in rapid succession, demanding increasing attention from multinational groups and innovative/up-to date advice from RED.

Only in the last years we have witnessed the development of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan, Country-by-country reporting, Pillar One and Pillar Two, among others. To be up-to date on all these developments, our team participates in courses, trainings and international conferences with multinational groups, international organizations and tax authorities.

Transfer Pricing on the radar

Transfer Pricing is high on the agenda of governments and international organizations. In the last years we have seen an increase in transfer pricing compliance obligations and controversies with tax authorities.

Whether you aim at maximizing tax efficiency or going for optimal audit defense, you will have to prepare for scrutiny from tax authorities, shareholders, media, politicians and others taking an interest in your transfer pricing model.

As an internationally operating group you are confronted with:

• A large and growing amount of transfer pricing rules
• Increasingly strict requirements for transfer pricing documentation
• Tax authorities at home and abroad that focus on transfer pricing
• Media, politics and NGOs that often measure your structures against a non-fiscal yardstick

How to be prepared

In view of these developments, it is important to look at TP in a realistic and practical way, aligned with the strategic goals and needs of the company. Amongst others, we can help you with the following:

• Determine transfer prices that are acceptable but also tax efficient
• Having TP documentation that meets compliance requirements
• Implement good transfer pricing processes within your organizations
• Prevent or efficiently solve audits, discussion and adjustments

Services

Our TP specialists can assist you in determining appropriate transfer prices for goods transactions, services, license agreements, and financial transactions such as loans, cash pooling agreements, and guarantees.

Some of the services we provide includes:

• TP model design, planning and implementation
• TP documentation and reporting
• TP support: Advice in terms of TP controversies, APAs, rulings with the tax authorities, and assistance with dispute resolution (arbitrage and mutual agreement procedures)
• Economic analyses (benchmarking): e.g., financial transactions, goods and services, intangible transactions
• Business restructuring/post-acquisition integrations
• Tax valuations: Shares and businesses, intangible, royalties

For these analysis we have access to several databases, including the Orbis database provided by Bureau van Dijk, RoyaltyRange, Bloomberg and Standard & Poor’s Capital IQ database.