Transactions within multinational companies are becoming increasingly important in business worldwide. All transactions among related parties are influenced by the Czech legal framework, which has recently become significantly stricter. For tax purposes, prices agreed between related parties have to meet the definition of arm’s length principle, and these prices are often subject to tax audits carried out by the Tax Authorities. The consequences of incorrect transfer pricing adjustments are tax exposure and penalties. In the case of companies receiving investment incentives, incorrect transfer pricing treatment can cause potential losses.
A specialized team of PwC tax professionals with expertise in both national and international tax law, combined with specific industry experience, can provide risk processing and benchmarking analyses enabling the determination of the prices for services and goods at arm’s length principle. We will help you to create a strategy and arrange the steps for transfer pricing and provide you with all documentation under the OECD directive.