TRANSFER PRICING
The rapid expansion of global trade in recent years, accompanied by a surge in cross-border transactions among affiliated entities, has elevated transfer pricing to a critical position within international tax matters. Multinational corporations, regardless of their scale, are facing heightened scrutiny from tax authorities regarding their transfer pricing practices. Pakistan has established comprehensive transfer pricing regulations, applying an arm’s length standard to transactions involving associates.
Transfer pricing has emerged as one of the most complex areas of international taxation. We provide guidance to multinational companies, advising them on the most suitable transfer pricing policies in alignment with the Income Tax Ordinance, 2001, and Income Tax Rules, 2002.
Our approach is characterized by innovation, crafting practical policies that are highly effective. We concentrate on determining appropriate prices for related-party transactions, encompassing the transfer of tangible goods, intangible assets, services, loans, and leases between entities. This scrutiny extends across various facets of multinational operations, such as research and development, manufacturing, marketing, distribution, and post-sales services, significantly impacting the global tax obligations of organizations.
Possible Challenges
- Seeking Assistance and Direction with Documentation
- Undergoing Scrutiny from Taxation Authorities Regarding Transfer Pricing Strategies
- Aiming to Align Global Transfer Pricing Policies
- In Search of Coordinated Transfer Planning Counsel
How Ocean Management Consultants Can Help?
- Conducting an in-depth functional analysis of specific entities and their associated industries, examining their operational intricacies
- Conducting comparative assessments and benchmarking analyses to assess market positioning and competitiveness.
- Providing expert representation during transfer pricing audit defense proceedings before tax authorities.
- Overseeing and managing international transfer pricing projects from a strategic perspective within the context of Pakistan's regulatory framework.
