agreed-upon-procedures

Transfer pricing documentation

Purposes and Deliveries of the service

Assist clients in filing and preparing transfer pricing documents, including the Local file, Master file and Country-by-country report. These documents are required by laws to submit to the local tax authorities where and when required. Without having these documents properly filed, clients will be subject to penalties and high tax risks in the future.

Clients of this service are companies that have transactions with related parties and are required by laws to prepare transfer pricing documents.

The service is delivered through the following steps:

  • Kick-off discussion: we make it clear and agreed with clients about objectives, schedules, cooperation mechanisms, implementation plan, responsibilities of each party. This step can be done through email and/or directly meetings; it is up to clients.
  • Planning (at our offices): we obtain a comprehensive understanding of clients' business and prepare the most relevant list of required documents for clients, then process the data/ information provided by clients.
  • Fieldwork (at clients’ offices): we perform the related procedures at Client’s premises and our office. Depending on where and when possible it might include: (1) obtain related information and data from the Client regarding its Group and its related parties transactions in accordance with prevailing regulations; (2) interview key personnel of the Client; (3) perform related analysis: industry analysis, functional and risk analysis, financial analysis, related party transaction analysis, economic analysis, including application of transfer pricing methodology and comparability analysis.
  • Finding Discussion: we present and explain our findings and solutions in detail with the management of clients. This step can be done through email and/or direct meetings.
  • Reporting: we prepare and send reports to clients for review and confirmation, then print & issue the final version. After issuing reports, we will support clients in answering questions from/ providing additional documents related to the transfer pricing reports to the tax authority (when required).

How long does the service take?

It depends very much on the scope of work and responses & cooperation from the client.

In reality, we usually manage to finish the service within 5 - 6 weeks in most cases. For urgent circumstances, we may apply special processes and resources together with active cooperation from the client.