TRANSFER PRICING
Transfer pricing is firstly a direct consequence of the globalization of business operation. Cross-border transactions between parties of the same group lead to the requirement to set arm’s length prices. Later, the same requirement applies, in Indonesia, to within-borders transactions between related parties or “domestic related party transactions”.
Failure to adhere to the transfer pricing requirement may cause significant consequences. However, full compliance does not automatically rule out potential disputes with the DGT given the very nature of being “arm’s length” which is hard to measure.
PreciousNine helps you deal with transfer pricing issues with our service which includes:
- Preparation of transfer pricing documentation
- Benchmarking analysis;
- Transfer pricing advice, including risk identification and mitigation;
- Transfer pricing audit support; and
- Transfer pricing dispute resolution support.