The recent financial crisis has led many tax authorities to implement transfer pricing regulations for protecting their tax base. The sheer value of cross border transactions provides the easiest way for tax authorities to protect their tax base while simultaneously managing the fiscal deficit resulted through financial stimulus packages and economic recovery plans.
With the increased focus on transfer pricing, PwC Singapore’s specialised transfer pricing team is ready to manage and address your transfer pricing needs.
The PwC Singapore transfer pricing team is a dedicated team of professionals who have high quality consulting capabilities in providing practical and tailor made business solutions to your transfer pricing needs. We are a part of the new organizational model which divides the PricewaterhouseCoopers network into three major clusters led by the senior partner of the leading national firm in each cluster. The East Cluster includes China, Singapore and Hong Kong, the South East Asia Peninsula, Oceania, Australia, New Zealand, Japan, Korea, the Philippines and Taiwan. Being part of the East Cluster, will enable us to draw and leverage off the experiences of our network firms while serving clients across industries.
As a team, we are passionate to meet and exceed our client’s expectations by delivering service of the highest standard and by adding value to our clients. In doing so, we partner with our clients to understand their organisational objectives and the industry in which they operate to provide practical solutions to their needs. Building on the knowledge of our dedicated industry specialists in areas such as Pharmaceutical and Healthcare, Oil and Gas, Financial Services, and Technology, Information, Communications and Entertainment (“TICE”) we have also provided industry specific solutions from a transfer pricing perspective to our clients.
We provide practical and tailor made transfer pricing solutions to your business life cycle needs within the national, regional and international space in the areas of:
Optimising your infrastructure processes and systems to deliver competitive customer service can be a major challenge—especially when so many parameters, from technology to labour mobility to legislation, are in such flux. PwC’s Value Chain Transformation™ (VCT) model has been designed to help companies transform the way they do business every step of the way, from initial strategy through final delivery—in a tax-advantaged manner.
With more and more countries introducing formal transfer pricing documentation requirements one can expect to see a surge of transfer pricing audits resulting in tax controversies going forward. As companies increasingly focus on globalising their operations and OECD stepping up its efforts on sharing information across jurisdictions, it is imperative for them to consider transfer pricing issues carefully while structuring their business operations. With tax authorities becoming more sophisticated, audits can be thorough and enforcement actions too harsh.
Singapore tax authorities have also introduced transfer pricing consultation procedure in Singapore whereby they are trying to emphasize the importance of transfer pricing documentation in Singapore. This process is a pre-cursor to transfer pricing audits. The tax authorities have also started transfer pricing audits and examinations for some of the taxpayers they consider to be high risk.
This new environment therefore requires multinational corporations to take proactive, coordinated steps to understand their transfer pricing arrangements and documentation requirements. Disputes and audits must be avoided, managed, and resolved. All issues must be coordinated and aligned across jurisdictions before they develop into larger business concerns.
How PwC can help
Under constant pressure to drive up the bottom-line, companies are restructuring their operating structures and supply chains as they move operations globally. PricewaterhouseCoopers Singapore’s transfer pricing team can assist you in adequately planning and structuring the new tax and legal structures to reflect your new operations. We do this by:
Are your transfer pricing policies properly documented? This is the key to any defence strategy. Undocumented policies make you legally exposed to audit adjustments. Now, with more than 60 countries having introduced formal transfer pricing documentation requirements and the number still growing, it is imperative for companies to have transfer pricing documentation in place to defend their transfer prices. To help companies with a diverse spectrum of needs, PricewaterhouseCoopers adopts customised approaches through the following options to develop the necessary documentation which suits your business needs.