Transfer Pricing Assistance

The main principle behind both the major international taxation treaties and the national Swedish legislations is that corporate profits are to be taxed by the country in which they were made. To ensure that international companies and company groups pay tax on their profit in the jurisdiction in which it originated, rather than transferring it to a more beneficial tax jurisdiction by selling goods or services to group companies for below the market value, most countries have implemented rules for Transfer Pricing. The basic principle of all such legislations is that internal transfers of goods and services must be made at the market prices which would have been taken out if the buyer had been an outside party.

Like most western economies Sweden applies the Transfer Pricing methods of the Organization for Economic Cooperation and Development (OECD), but a large number of legal precedents on the national level have also come to play an important part. Compliance with the Transfer Pricing rules, and the ability to provide the authorities with sufficient documentation to confirm this compliance, are central aspects of all international tax accounting today.

KagNag can assist you with everything from choosing which Transfer Pricing method is the best for your enterprise, compile the necessary financial documentation, and help you to negotiate favorable Advance Pricing Agreements with the Swedish tax authority.