Preparation of transfer pricing documentation

Transfer pricing relates to the pricing applied between related parties. In accordance with the provisions of the Act on Corporate Tax and Dividend Tax, all companies must prepare documentation on their related party transactions from January 1, 2003. The documentation has to present and support the price applied in the transactions between the related parties.It is important to note that transfer pricing within corporate taxation is subject to increasing scrutiny by the tax authority and is being treated as a key strategic area. .

We believe that this documentation obligation is not merely an extra burden on enterprises but also an opportunity for tax optimization and for throughout of assesment of tax risks of the intra-group settlement practice applied.

The transfer pricing tax group of RSM DTM Hungary Ltd. searches and analyses comparable data by using the unique “AMADEUS” software, which is the largest company information system. It is an advantage for our clients that the Hungarian Tax Authority also performs transfer pricing audits on the basis of the “AMADEUS” international database we apply.