Transfer Pricing

The Maples Group offers transfer pricing solutions in a wide spectrum of industries. We are experienced with the continued growth and complexity of international structures and the increasingly onerous transfer pricing requirements in today's global landscape. We are able to focus and manage your transfer pricing risk by providing efficient solutions that are tailor-made to your specific business and investment operations.

Overview

Now more than ever, multi-national enterprises and investment groups must navigate an ever increasing amount of complexity. Transfer pricing regulations and compliance requirements are continually expanding along with increased enforcement activities by tax authorities around the world. As a result, transfer pricing has become a central focus of risk management applying to all areas of cross-border activities.

In addition, transfer pricing continues to evolve at the OECD, EU and local levels. We can provide guidance on managing your transfer pricing risks via a coordinated approach to all of these levels and improve the robustness of your transfer pricing documentation.

Luxembourg Requirements

Luxembourg has officially adapted the OECD's 'arm's length principle' into its tax laws by requiring that all transactions between associated enterprises act in line with this principle.

Additionally, the Luxembourg tax authorities introduced specific documentation requirements for companies performing intra-group financing activities with a specific focus on the equity at risk, the interest rate to be applied and the margin to be retained in Luxembourg. The Luxembourg tax authorities are quite attentive on verifying that these transfer pricing documentation requirements are duly fulfilled with the introduction of specific elements in the corporate tax returns. It is worth highlighting that the European Commission has launched several State Aid cases involving Luxembourg with a sharp focus on the correct application of OECD Transfer Pricing principles. Accordingly, an essential component in best practice Luxembourg tax planning and structuring should include pragmatic compliance with OECDbased transfer pricing documentation.

Our Luxembourg tax team can provide this expertise, particularly regarding multi-national groups with Luxembourg holding entities with debt financing, cross-border financing activities and alternative investment fund structures.

Ireland: A Growing Component

Ireland's transfer pricing legislation also applies the arm's length principle. In general, this means that transactions between related parties must be priced as if they were carried out between unrelated parties. Our Irish tax team has a wide scope of experience and expertise in providing both multi-national and alternative fund client groups with practical transfer pricing solutions to fulfil these Irish documentation obligations.

Solutions

Our Irish and Luxembourg tax teams notably can provide the following solutions to manage your tax and transfer pricing risk including:

Interest rate benchmark studies for crossborder financing
Determination of an appropriate equity at risk and applicable arm's length margin for intermediary intra-group financing activities (back-to-back financing)
Preparation of OECD-compliant transfer pricing reports (Local file, Master file)
Arm's length remuneration for a wide variety of intragroup services
Functional analysis of risks, assets, and personnel
Debt capacity analysis to assure the debt financing in your structures is robust and compliant
Guidance on harmonising economic substance with functional analysis components
Valuations of strategic and operational assets
Transfer pricing risk analysis