Transfer pricing

Since 2012, in case of related-party transactions, Russian taxpayers are obliged to be guided by the principle of "arm's length". This term refers to the use for tax purposes of prices comparable to prices for independent contractors, ceteris paribus. Transfer pricing involves the development of appropriate policies in companies conducting controlled transactions.

The taxpayer is required not only to notify the Tax Authorities on transactions with related parties not later than 20th of May of the each year after reporting, but also to justify the price for each such transaction in the Transfer Pricing Documentation.

Outsourcing Solutions renders services on transfer pricing in strict accordance with the norms of the tax legislation. Our experts will undertake the development of Transfer Pricing Documentation and notification to the Tax Authorities. We will help you to:

• compile a list of related parties and individuals;
• define a list of transactions to be monitored;
• set the pricing method for the above transactions;
• specify the data sources used in the pricing;
• develop documents to justify the application of prices;
• notify the Tax Authorities on controlled transactions during the reporting period.