Transfer Prices

The globalization of the world economy has generated a series of changes in how companies view the reality for the purposes of taxation and the precautions to be taken and shelter to meet their tax obligations. International organizations such as the OECD “Organization for Cooperation and Economic Development” and regional governments have signed agreements for the creation of various tax models aimed at avoiding double taxation, in the foreground and the search by the tax authorities of each country with its taxpayers for achieving fair pay taxes.

According to international regulations and tax laws of the Bolivarian Republic of Venezuela, published in the Gazette Extraordinary 5390 of 22 October 1999 and amended in the Official Gazette 5.566 of December 28, 2001, subjects that perform operations with related party must submit with the annual declaration of income tax, an additional statement with information on the various transactions conducted between related companies involving an analysis of transfer pricing. Furthermore should keep the necessary documentation for verification to justify transfer prices between related parties made, the methods used for determining the same and the comparison criteria used to conclude that the method used is the most appropriate for each operation. Baker Tilly Venezuela has the experience, knowledge and resources necessary for the preparation, support and presentation of the information on transfer prices, in order to comply with legal regulations.

Our services:

– The study of the price that serves our clients to support the currency movements used in transactions between related entities and meet obligations to keep documentation substantiating transfer prices.

– We offer our customers a broad managerial and financial information of companies that perform a similar function, which is a valuable benchmarking tool.

– We review and advise on policies arising from the implementation of transfer prices policies in order to maximize efficiency in tax costs generated in international taxation.

– We apply methodology and transfer prices concepts for the evaluation of intangible property.

– Restructuring and reengineering of the various regulatory, financial and commercial aspects to optimize cash flows and optimizing the value for the shareholder.