Transfer Pricing

Issues often arise for transfer pricing strategy and planning when multinationals enter into company reorganisations such as mergers and acquisitions, performance benchmarking, business restructuring, and incentive management policies. 

At Taxand Cyprus we focus on developing sound transfer pricing solutions based on economic principles to achieve management objectives and regulatory requirements. Taxand Cyprus’s transfer pricing experts use economic models to deliver strategic pricing transfers to our clients, that consistently exceed expectations. 

Supply Chain Management (“SCM”)

Intercompany pricing is taken into account for an efficient supply chain management. Transfer pricing Cyprus has a strategic role as it is essential in managing and controlling the allocation of profits between entities within a multinational enterprise and by managing the effective tax rate and the risks of the multinational. Taxand Cyprus’s experience in developing sustainable transfer pricing solutions results in the improvement of our clients’ supply chain and the adoption of desirable tax planning strategies.

It is important for companies to review their tax and overall business strategy regularly to ensure tax efficiency. The various tax implications arising from decision makings as well as the analysis and restructuring of value chains can be analysed and explained with that are value chain management (VCM)  operating model. Taxand Cyprus’s services help mitigate risks, align your tax strategy to the whole business strategy, limit tax leakage and safeguard your reputation.

Operational Transfer Pricing 

The payment of appropriate taxes in the countries where you operate depends on the implementation and management of transfer pricing policies. Taxand Cyprus can help with operational transfer pricing, documented processes and the appropriate technology to ensure our clients are in compliance with their tax obligations.

Transfer Pricing Due Diligence 

Taxand Cyprus’s global regulatory work aims to offer assistance to clients in analysing and documenting their cross-border intercorporate transactions in accordance with the tax regulations in the countries in which they operate. In order to assess and mitigate risks faced by our clients , our transfer pricing experts benchmark clients’ business against comparable industries Taxand Cyprus has access to financial databases and has the necessary knowledge of the transfer pricing compliance environment, which allows us to determine whether the transfer rates of royalties, interests or commissions on a given transaction, are in line with standard requirements and country-specific requirements.

Tax and Transfer Pricing modeling support

Taxand Cyprus can assist clients to model and project taxation impact, under various scenarios. This allows taxpayers to map and quantify the impact of alternatives in tax strategy and transfer pricing policy in Cyprus, which can prove an essential tax risk management tool.

Cost Sharing Arrangements

Cost Sharing Arrangements have been widely used by multinationals in their business operations. However, increased attention and regulatory requirements have but Cost Sharing Arrangements under strict scrutiny. For example, transfers of intangible assets that lead to profits, should be valued so that all the benefits of transferable intangible assets, including the benefits from subsequent development of these intangibles, accrue to the original intangible’s developer. Taxand Cyprus can assist multinationals in complying with the requirements for Cost Sharing Arrangements, in accordance with the Transfer Pricing Guidelines and national requirements.

Learn more about Transfer Pricing Policy in Cyprus by navigating to our TAX Journals & Publications.