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Countries all over the world are applying greater scrutiny – and calling for stricter regulations – on transfer pricing practices. However, this greater scrutiny can provide an opportunity to identify more cost-effective arrangements for your international transactions.
Transfer pricing planning and compliance is essential for companies that want to expand beyond Puerto Rico. Transfer pricing is essential when Puerto Rican companies conduct business with related parties outside of the Island. The compliance burden for cross-border transactions is significant, and the penalties around the World for not complying is costly.
At a global level, there has been a rapid introduction of new transfer pricing regulations from the Organization for Economic Cooperation and Development (OECD) as part of their Base Erosion and Profit Shifting Initiative (BEPS). This will have a substantial impact on current and future transfer pricing structures for all sizes of business.
BDO’s Transfer Pricing Practice assists companies and their affiliates in dealing with the unique tax consequences – international and domestic – related to intercompany pricing issues to identify planning opportunities and assist with compliance and audit resolutions. Our professionals work to develop transfer pricing policies that are defensible, flexible, and congruent with your company's overall tax planning, so that you can focus on other operational business objectives.
Our team can help address issues arising in related-party transactions such as:
- Transfer of tangible products
- Development, transfer, or sharing of intellectual property
- Provision of beneficial services
- Extension of loans or financial arrangements that involve intercompany funds