With globalization of business and cross border transactions increasing day by day, tax reforms have taken place. If the taxation matters are not handled in an effective manner, that can toll the continuous working of any international organization.
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 is not a new concept to the Global Taxation Systems. It is implemented by Countries to ensure proper segregation of revenue for taxation. MHSS helps such companies decide, implement and justify the Arm’s Length Price of each transaction. We provide the following sub-services under Transfer Pricing:
Transfer Pricing Health Check
We review existing inter-company Transfer Pricing arrangements and help in improving them to mitigate the risk of transfer pricing litigation.
Transfer Pricing Study
We assist in planning and formulating an effective global pricing policy for pro-actively reducing the taxation litigation.
Transfer Pricing Litigation Support
Transfer Pricing Authorities are very aggressive when it comes to Pakistan and is one of the most sensitive and litigation prone field. We assess our clients transfer pricing study based upon their business models to resolve the disputes with Tax 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@example.com or alternatively, contact our office directly.