Transactions within multinational companies are becoming increasingly important in business worldwide. For tax purposes, prices agreed between related parties have to meet the definition of arm’s length principle.
It’s been over many years now since Mongolia implemented price control regulations for tax purposes (“transfer pricing rules” or “TP rules”). Over this time, these rules remain vague and not properly detailed. However, recently a new understanding has developed with the state authorities of how important these rules are. The Mongolian Ministry of Finance and Mongolian Tax Authority have developed a number of draft regulations strengthening the current TP rules. Clearly, the tax authorities are now starting to focus on TP. Businesses with related-party transactions will need to extremely conscious of the TP requirements.
We have assembled an extremely strong TP team with team members have extensive Mongolian and foreign experience. Where need, PwC Mongolia is by technical experts from other countries. Our TP practice consists of more than 2500 specialists in 80 countries.