Accounting, Payroll, Tax & Legal since 1989

Transfer pricing is becoming  a key topic – does your company have the required documents up to date?

If the transfer price is not the market value, the basis for determining income tax should be the market value – the difference between the transfer price and the market value is subject of taxation on the basis of ITA §§ 14, 50 or 53, if it is not a fringe benefit (§ 48).

In Estonia, the tax authorities have issued the transfer pricing guidelines which defines a common goal in transactions between associated persons - maximizing profits. To achieve that goal the profits will be moved through various tax jurisdiction or forms of business, which ultimately ensures a lower tax burden. As a rule, profits will be moved through the agreements that are not economically justified, and that non-associated persons would not transact with each other.

Tax liability optimization with transaction between associated persons puts entrepreneurs in an unequal position and fails state tax revenue.  


23.03.16


Latest articles

23

Aug

Why should my business outsource accounting services?

2

Sep

Taxation of most common marketing techniques used by...

26

Aug

DEFINITION OF BUSINESS SECRETS IN THE LIGHT OF...

Contact

Email again:
Services