Transfer Pricing
Transfer Pricing Advisory in Indonesia
To resolve complex transfer pricing issues, a transfer pricing advisory is required. Tax authorities enforce stringent regulations to protect their tax revenues, with cross-border business transactions being their primary concern. These transactions must adhere to the globally accepted arm’s length principle and are documented by domestic tax laws.
Transfer Pricing Services
A. Transfer Pricing Advisory: An Overview
Tax authorities now consider transfer pricing to be a significant issue because it can be used to transfer assets and income between jurisdictions with favorable tax rates. The Indonesian tax authorities deal with this issue by enforcing detailed Transfer Pricing regulations and complex documentation requirements.
B. Transfer Pricing Advisory with Abisnis
Your business model is critical in determining your Transfer Pricing setting. Our Transfer Pricing consulting services are distinguished by your business requirements while also adhering to Indonesian legal requirements and international best practices.
Based on our extensive experience in transfer pricing, our team can provide you with the following services:
- We are determining the arm’s length price range for proposed related party transactions, including cost-plus mark-up analysis and arm’s length net margin range.
- We are examining the value chain for risk areas and opportunities to improve transfer pricing policies.
- Examining intercompany agreements to ensure they are Transfer Pricing compliant.
- Royalty benchmarking is used to determine the arm’s length royalty payout for the use of the intellectual property while keeping the functional profile of the transacting entities in mind.
- We manage cross-charge documentation, including benefit analysis and arm’s length cross-charge methodology.
