In recent years, TP has become a key area of international taxation facing multinational enterprises and tax administrations.
TP requirements mainly apply to cross-border transactions. If a multinational group enters the Latvian market, e.g. by establishing, merging or acquiring a Latvian subsidiary or creating a permanent establishment (PE) in Latvia, and that subsidiary or PE makes transactions with other group companies (or with any other persons such as family members or significant individual shareholders), the prices applied in those transactions may directly affect how the profit or loss of related parties is measured, and it is important to disclose how those prices are set in practice.
So the transfer prices of a multinational group with a taxable presence in Latvia are governed by Latvian tax laws.
PwC transfer pricing services:
- Preparing TP documentation
- Assistance in segmenting financial data
- Advice on revising the legal form of controlled transactions
- Benchmarking studies
- Preparing transaction documents for controlled transactions between Latvian residents
- Preparation of transfer pricing policy
- Transfer pricing policy for financial transactions
- Assistance in concluding an advance pricing agreement with the tax authority
- Transfer pricing risk assessment
- Representing you in negotiations with the tax authority
- The TP impact of Covid-19
- Preparing/filing Country-by-Country Report
Preparing TP documentation
Assistance in segmenting financial data
Advice on revising the legal form of controlled transactions
Benchmarking studies
Preparing transaction documents for controlled transactions between Latvian residents
Preparation of transfer pricing policy
Transfer pricing policy for financial transactions
Assistance in concluding an advance pricing agreement with the tax authority
Transfer pricing risk assessment
Representing you in negotiations with the tax authority
The TP impact of Covid-19
Preparing/filing Country-by-Country Report
Risks associated with incorrect transfer pricing:
- Reassessment of local taxes – with significant penalties and interest on overdue tax and with
- double taxation of income where a double tax treaty offers no relief
- Uncertainty about your tax burden and costly, lengthy conflicts with supervisory authorities
- Damage to your reputation and corporate brand
Our global team of more than 3,100 transfer pricing experts use their expertise in helping our clients around the world to execute successful transfer pricing transactions and to resolve challenges as they arise.
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