Global Transfer Pricing Newsletter #3/2022 now available

It is our pleasure to present to you the third edition of our WTS Global Transfer Pricing Newsletter 2022.

In this latest edition of the WTS Transfer Pricing Newsletter, our colleagues from 13 countries provided an update on recently introduced legislations and cases.

The Argentine Tax Court has recently ruled on an interesting Transfer Pricing case, concerning the timing of benchmarking a transfer of goods. Further details about this case can be found in the article.

According to the Austrian contribution regarding intra-group financing in Austria, alongside the interest rate, a particular strong focus is placed by the tax authorities on whether the debt instrument might be re-qualified into “hidden equity”. Thus, there should be documentation on the capital structure of the borrower, transparency of the loan agreement as well as the arm's length character of the terms and conditions.

Additionally, based on the recent decision of the Austrian Financial Court, liability commissions must be charged from the start of the loan agreement, reductions in the Transfer Pricing with respect to deliveries of goods must be credibly demonstrated and the arm's length interest must be charged for supplier credits.

In Brazil, the Superior Court of Justice has decided that, until further legislative measures are taken, the so-called PRL 60 method must be calculated in a specific way. Our article sheds light on the decision and elaborates on the main practical implications.

Our team in Chile presents a summary of the 2022 Tax Reform Act, which contains recommendations for updating the Transfer Pricing rules.

Our team in France elaborates on new rulings regarding local research tax credits paving the way for consistently deducing the local research tax credits and/or similar subsidies from any R&D cost-plus services provided by eligible French companies.

The Indonesian government introduced an additional three Transfer Pricing methods that provide further guidance on certain related party transactions. Our colleagues summarize the key aspects of this legislative development.

The Italian Tax Agency recently issued instructions with regard to the correct and practical use of the "arm's length range" for the application of Italian Transfer Pricing rules.

According to a recent court ruling in Poland, comparable studies prepared prior to the standards set in Polish Transfer Pricing regulations could limit the risk of tax controversy.

In Saudi Arabia, the relevant authorities have published their draft legislation on Transfer Pricing. The article highlights the main changes and innovations.

In recent years we have seen a growing "systematization" of the Senegalese Transfer Pricing audits. Our local colleagues explain this in more detail and provide initial recommendations for action.

Our colleagues in Thailand highlight the latest developments initiated by local tax authorities in connection with cash pooling arrangements. The article summarizes the main principles.

The article from our colleagues in Ukraine describes the fields of action related to Transfer Pricing despite the difficult circumstances caused by the war. In essence, this article elaborates on the fact that the Transfer Pricing world is not standing still during the war.

July 2022 saw the United Kingdom government publish a draft legislation with regard to Transfer Pricing documentation requirements with some significant changes. The article summarizes the main innovations.

Read the WTS Global Transfer Pricing Newsletter here.