Dear Sir/Madam!
We would like to draw your attention to the following the importance of timely transfer pricing analyses.
From timely preparation of analyses gives companies the opportunity to that the use in related party transactions of prices from already be supported in advance, thus avoiding the need to prove compliance afterwards, in the event of an audit. Furthermore, under the Hungarian transfer pricing rules, if the profitability achieved by the company does not fall within the market range, the adjustment must be made to the median of the range. In many cases, this can mean a significant increase in the tax base and thus a significantly higher tax burden. However, if transfer pricing analyses are completed and available in time, it is also possible to make the necessary adjustment at the accounting level. In this case the adjustment can be made to any point in the normal market range, which could result in significant tax savings for the company.
It is important to emphasise that the cost of the pre-prepared analyses is taken into account in the preparation of the transfer pricing documentation, so it is not an additional cost, but a cost-effective solution for our customers.
If you are planning a new transaction or would like to have a preliminary or updated analysis prepared for an existing related party transaction, please contact our team of transfer pricing experts. We will be happy to arrange even a short meeting to discuss the options.
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