Major tax reforms have been taken place due to the globalization and cross border transactions of business. If taxation matters are not handled effetely, that can toll the continuous working of any organization working internationally.
Today, Pakistan has a double taxation avoidance agreement with a number of countries. Many countries have established their offices in Pakistan. For cross border transactions between the associated companies, there needs to have a clear legislation about arm’s length price, which is called transfer pricing. Now what’s Arms’ Length Price- when two or more enterprises which are associated and get into transactions of profit, service or facility, then there is a need of some solid base of costing to exist. Such a price of services or facility should be as will not impact tax revenue etc. of the country. Thus, Transfer Pricing, which is an international compliance with individual country norms, is of high importance. But being very technical in nature, a person with professional and specialized skills only can analyze Transfer Pricing legislations.
Transfer pricing concept is mostly used for the global taxation systems and is implemented by countries to ensure segregation of revenue for taxation. MHSS helps business entities to decide, implement and justify the Arm’s length pricing mechanism of each transaction. Our firm provides following sub-services under transfer pricing:
Transfer Pricing Health Check
Our firm review existing inter company transfer pricing arrangement within the group inter country or across the border and help in mitigating the risk of transfer pricing litigations.
Transfer Pricing Study
Our firm assist business entities in planning and formulating an effective global pricing policy for pro-actively reducing tax litigations.
Transfer Pricing Litigation Support
Regulatory bodies wings dealing with transfer pricing are very aggressive in Pakistan and is one of the most sensitive and litigation prone field. We asses transfer pricing based upon the business models of the organizations to avoid and resolve disputes with the regulatory authorities.
We would be delighted to discuss how we can help you, and your group or company. Please get in touch and contact MHSS at [email protected] or alternatively, contact our office directly.