Transfer Pricing

Intragroup transactions across borders are growing rapidly and becoming ever more complex

Transfer pricing refers to pricing arrangements between related parties, often involving transfers of tangible and intangible property.

Regulations regarding intragroup or related party transactions are being implemented and intensified globally. Tax authorities are keeping a closer eye on the growing number of such cross-border transactions. International organisations like the EU and the OECD have also taken a number of initiatives in respect of issues regarding transfer pricing, restructuring of businesses and allocation of profits to permanent establishments.

Complying with these requirements can be complicated and time-consuming. Every multinational group needs to have a coherent and defensible transfer pricing policy grounded in the climate in which the different group members are operating.

How can we help?

We can help you manage your transfer pricing risks and identifying opportunities for improving the efficiency of your transfer pricing function, and as part of the global PwC network we cooperate closely with specialists in transfer pricing worldwide. Our services include:

Assessment of transfer pricing policies
Advising in respect of transfer pricing documentation based on the OECD Guidelines
Assistance with reviewing agreements between related parties from a transfer pricing perspective
Representation with the tax authorities
Assistance with Country-By-Country Reporting (“CbCR”) requirements
Transfer pricing training

Published February 2024

An amendment has been made to the Maltese Transfer Pricing Rules whereby a sunset clause to the grandfathering provision has been introduced. As a result of the said amendment all cross-border arrangements, irrespective of when these are entered into, will be in scope with effect from 1 January 2027. In addition, the Malta Tax and Customs Administration issued the Maltese Transfer Pricing Guidelines which provide further insight and guidance on a number of matters.

Maltese Transfer Pricing Rules

On 18 November 2022, Malta introduced Transfer Pricing Rules effective from 1 January 2024 for new and materially altered arrangements, and from 1 January 2027 for all arrangements. These rules apply to large enterprises, assessed at the group level, and target cross-border transactions between associated enterprises, excluding domestic transactions. The de minimis threshold exempts revenue transactions under €6m and capital transactions under €20m. The rules follow OECD TP Guidelines for methodologies and documentation and establish a framework for unilateral transfer pricing rulings and APAs, binding for up to five years.