The end-of-May deadline for preparing the transfer pricing documentation and setting the tax base adjustments
May deadline for transfer pricing documentation
The difference between the arm’s length prices and the applied transfer prices may be settled between related parties by adjusting the original value of the transaction by means of an accounting document/invoice or by adjusting the tax bases. If the time available for notifying the respective amounts to be validated against each other expires due to specific intra-group deadlines (reporting, closing), the tax base adjustment remains the only option. However, this solution carries a higher risk of double taxation. In our newsletter we summarize the most important information related to the above.
To read the whole newsletter below.