Transfer pricing deadlines
Since globalisation is on the rise, more and more companies are doing business abroad. When doing business in other countries, it is important to keep track of different tax rules per country. International tax rules are subject to change and can therefore be challenging for companies. Transfer pricing transactions between different entities of one company must be at arm’s length and properly documented. Depending on the country, companies are obliged to document this by means of local files or as a separate transfer pricing report. Moreover, these reports are subject to transfer pricing deadlines. For incidental transfer pricing transactions such as restructurings, separate reports can also be prepared.
Transfer pricing compliance requirements
Compliance within the transfer pricing discipline is about meeting all regulations, both national and international. (Timely) preparation of transfer pricing documentation is crucial for all transfer pricing compliance requirements. Increasingly more countries around the world are implementing regulations for transfer pricing documentation. Different countries can have various transfer pricing compliance requirements. All these requirements have transfer pricing deadlines. Important requirements include preparing a master file, preparing local files and country-by-country reporting. The transfer pricing deadlines differ per country and per requirement.
The master file is an annual transfer pricing compliance requirement in most jurisdictions. This file is prepared on a group level and its contents focuses on describing the context in which intercompany transactions take place.
The local files are an annual requirement on a jurisdictional level, depending on the local tax legislation and thresholds that vary per jurisdiction. The contents of the local files focuses on describing the local organization and its material intercompany transactions.
Country-by-Country reporting is – for most countries – only required for MNEs with a consolidated turnover of more than 750 million euros. It is an annual requirement in most jurisdictions. The report provides information by country for high-level transfer pricing risk assessment purposes.
Transfer pricing compliance deadlines
Companies sometimes determine a compliance strategy based on various factors such as risk appetite and resources. For example, it may not be feasible to pursue the highest level of compliance due to limited resources. A compliance strategy is in that case very helpful. An important factor in this process is to create a priority list and timeline that includes the required transfer pricing deadlines based on urgency.
On the other hand Tax authorities embed transfer pricing compliance deadlines in local laws. The deadlines can vary per jurisdiction and local documentation requirement. It is important to be aware of these mandatory transfer pricing filing deadlines, as missing deadlines might cause penalties. In the end, a missed deadline is costly and not unburdens you from any obligation.
Coperitas and transfer pricing filing deadlines
Due to all compliance requirements your company might lose insight of all the transfer pricing deadlines. Within Coperitas, part of our job is to make sure you never worry about a missed deadline again.One of the functions within Coperitas is the possibility to keep track of all transfer pricing filing deadlines relevant to your firm. This offers you the opportunity to focus on important matters while being in control over your compliance deadlines. Curious how this works? Schedule a call or a demo.
Goal of our solution
One thing was very clear from the start: our solution had to be user-friendly and enable tax teams to become and remain in control without unnecessary interference from consultants. And we achieved our goal. Coperitas succeeded in creating a transfer pricing tool that can function as a stand-alone solution for your Transfer Pricing challenges and automation.
All the information combined
On the well-defined dashboard all this information is combined, and the great transfer pricing documentation generator makes sure you always stay compliant and in control. Because of the flexible way Coperitas is designed, it can also serve as a solution for challenges related to tax, finance, and legal matters.
Built with knowledge
During development, we worked closely with tax teams of multinationals and transfer pricing experts. This resulted in additional features. Precisely these features made the in-house tax department of one of the largest Dutch multinationals decide to switch from their running software solution to Coperitas.
Empowering tax teams with passion
It is our passion to empower tax teams to operate independently and become in control of their transfer pricing with the help of technology. We guide clients to make an informed decision on the optimal use of technology within their company. Partnerships enable us to offer clients software solutions that are not only applicable to today’s goals, but also to those of tomorrow. Thanks to these partnerships, Coperitas can rely on a combined experience of over 100 years of practical transfer pricing knowledge. This means that we can support you every step of the way!
More about Coperitas
The journey of Coperitas began in 2016 when we took on the challenge of creating the extra mile for multinationals. Our goal: to answer the increasing demand for flexible transfer pricing software from tax teams. This started the search for an effective solution to the growing compliance burden of multinationals.