TRANSFER PRICES - AUDIT CENTER NOVI SAD
"… Transfer prices are, for the most part, a matter of fact and circumstance in connection with a large dose of common sense ..."
Canadian Tax Court
Transfer prices include:
- Prices of products, goods and services
- Prices of fixed assets and intangible assets
- Joint participation in R&D costs
The development of the transfer pricing case is intended for companies operating with domestic and international affiliates and whose ownership structure has some of the following common grounds:
- Legal entities between which there is a possibility of control or a possibility of significant influence on business decisions - holding at least 25% of shares or shares, i.e. votes in management bodies (Article 59, paragraphs 3 and 4 of the Law)
- Legal entities in which the same natural or legal persons participate in management and control or capital (Article 59, paragraph 5 of the Law)
- Relatives of owners of legal entities related by virtue of holding at least 25% of shares or shares or votes in governing bodies (Article 59, paragraph 6 of the Law)
- Legal entities from jurisdictions with a preferential tax system - the so-called tax havens (Article 59, Paragraph 7 of the Law)
Considering the complexity of transfer pricing issues and the impact of this tax instrument on the amount of the tax base (taxable profit), as well as the issues raised in this regard, we will explain the substance and practical application of the provisions of the Corporate Income Tax Act and bylaws that regulate transfer prices.
LEGAL AND OTHER REGULATIONS
Transfer prices, , as a tax instrument are regulated by Art. 59 to 61 of the Law on Corporate Income Tax ("Official Gazette of RS", No. 25/2001, 80/2002, 80/2002 - other law, 43/2003, 84/2004, 18/2010, 101/2011, 119/2012, 47/2013, 108/2013, 68/2014 - other law, 142/2014, 91/2015 - authentic interpretation, 112/2015, 113/2017, 95/2018 and 86/2019 ), as well as
– REGULATION ON TRANSFER PRICES AND METHODS APPLICABLE TO THE "PRINCIPLE OF ARRANGEMENT" PRINCIPLES APPLICABLE WHEN ESTABLISHING PRICES OF RELATED PARTY TRANSACTIONS ("Official Gazette of RS", Nos. 61/2013, 8/2014 and 94/2019) and
– OECD Guidelines for the implementation of transfer pricing rules.