Transfer Pricing
Transfer pricing has been one of Wellbens’s most sought-after services. The Slovak financial administration has begun actively investigating transactions not only among foreign but also among domestic related entities. The essence of transfer pricing is the correct setting of the transfer price, which is meant to be equal to prices used between independent persons in comparable business relationships.
If you trade with dependent natural or legal person, you are required by the Slovak Income Tax Act to possess transfer pricing documentation for all the transactions with the dependents. At Wellbens we are happy to help you with the preparation of complete transfer pricing documentation for your company.
What is transfer pricing and why is it important for entrepreneurs?
Transfer pricing is a term that refers to the setting of correct transaction prices between dependents.
Related entity is:
- close person as defined by the Civil code,
- an economically, personally or otherwise related person or entity,
- a person or entity that is part of a consolidated entity for consolidation purposes.
The prime importance of transfer pricing is to ensure that prices in transactions between related entities meet the requirements of an independent business relationship for tax purposes. In other words, revenues must not be transferred from one entity to another without an economic substance of such a transfer.
According to the law, every company trading with dependent entities is obliged to keep transfer pricing documentation, not only when dealing with foreign dependent entities, but also when trading with domestic dependent entities.
Transfer pricing documentation should determine the independent market price that the entity should use in a particular transaction with a related entity.
Transfer pricing documentation is kept for each tax period and the tax administrator has the right to request the taxpayer to submit such documentation even outside a regular tax audit. The deadline for submitting the documentation is only 15 days from the receipt of the request, which is why we recommend that it be prepared in advance.
Transfer pricing services at Wellbens
At Wellbes we offer our clients a comprehensive coverage of transfer pricing obligations:
- Analysis of the transactions with related entities
- Determining the number of transactions that require separate documentation
- Determining an independent market price based on market analysis
- Preparation of a complete documentation set
Choosing the right transfer pricing method:
- CUP method
- Resale price method
- Cost plus method
- Transactional net margin method (TNMM)
- Transactional profit split method
Why should you choose Wellbens?
Wellbens was established by a group of experienced advisors who understand the needs of modern companies and entrepreneurs. The main effort is to bring quality services, precise advice and real added value while using the latest technologies. We believe that Wellbens style – client approach, efficient, precise and modern – is the way forward for any business.
Want to learn more about transfer pricing services at Wellbens?
See the price list and do not hesitate to contact us:
YOUR RIGHT CONTACT AT WELLBENS
Co-founder / CEO of Wellbens and a modern lawyer who understands the latest trends in law, tax and business. Lukas spent a part of his career in an international law firm and by running own legal, tax & accounting businesses, what helped him to gain lots of experience and knowledge in the field of advisory services. Thanks to Lukas’ talent and his background, he is able to provide our clients with superb advisory at international level and support them in their businesses as well as other activities.