The significant growth in world trade in recent years, has resulted in companies expand globally. Due to this global tax and treasury strategies need to become more integrated, flexible and sustainable.
Similarly, the expansions in Companies operations globally has resulted an increase in cross - border transactions between related parties, which has propelled transfer pricing to the forefront of important international tax issues. MNC’s of all sizes are finding their transfer pricing practices under increased scrutiny by tax authorities. Some transfer pricing regulations are implemented in Pakistan. Presently, under the fair value concept, arm’s length standard is applied on transactions between associates.
BDO assists with foreign tax credits, income repatriation, risk management, post-merger integration and legal entity rationalization. We provides a framework for discussion, design and implementation of global tax and treasury strategies. We help multinational companies to objectively and methodically map their tax strategy and manage risk going forward.
We provides innovated and the result oriented policies which focuses on prices charged for related – party transactions, including inter – company transfer of tangible goods, intangible property, services, loans and leases. It affects nearly every aspect of multinational operations - R&D manufacturing, marketing and distribution, and after-sale services.
Our range of services in the area of transfer pricing includes:
- Detailed functional analysis of selected entities and related industry analysis
- Comparables and benchmarking analysis exercises
- Country by country (CBC) reporting
- Representation before tax authorities for transfer pricing audit defense
- Management of international transfer pricing projects from Pakistan perspective