Transfer pricing consultancy

The preparation of transfer pricing documentation is a liability that is included in the Act on Corporate Tax (Act LXXXI of 1996 on Corporate Tax).

The affiliated companies determine the arm’s length price regarding their transactions with each other in the transfer pricing registers, the method they apply when determining the arm’s length price, as well as the justifying facts and circumstances.

 It is important to describe since in case the price applied by them (transfer price) differs from the arm’s length price, they must modify their corporate tax base with an amount that corresponds to the difference.

The lack of transfer pricing documentation for those who are obliged to prepare it can cause serious problems. According to Act XCII of 2003 on the Rules of Taxation the auditor may impose a penalty of 2 million Hungarian forints on each missing transfer pricing documentation. And the documentation must be prepared for each transaction.

Would you like to know what risks may be hidden concerning the transfer-pricing issue in your company?

Do you need help about how to start and what you must do to keep your company safe?

Consult us FREE about transfer pricing to avoid the 2 million forint penalty!

Transfer pricing consultancy

Information on Transfer pricing