International tax transfer pricing rules identify “controlled transactions” that are subject to arm’s length pricing rules and related documentation standards. Generally, the U.S. “best method” and applicable O.E.C.D. transfer pricing methods can be applied to measure whether these transactions have been carried out at arm’s length in a manner acceptable to the relevant tax authorities. However, U.S. and O.E.C.D. methods do not always produce consistent results.
Transfer pricing regulations require the arm’s length standard to be applied to “controlled transactions” following the best method rule. A related documentation standard also applies. Generally, the Section 482 “best method” and relevant O.E.C.D. transfer pricing methods can be applied to establish arm’s length pricing in a manner acceptable to the relevant tax authorities. However, U.S. and O.E.C.D. approaches do not always produce consistent outcomes or documentation.
Today, the I.R.S. and other O.E.C.D./G-20 B.E.P.S. Project participants identify transfer pricing to be among the most important areas for coordinated scrutiny by tax authorities.
The Firm works with clients to properly identify controlled transactions, achieve the best alignment between U.S. and foreign approaches, select and rigorously apply transfer pricing methods, meet worldwide documentation requirements, and integrate transfer pricing and business practices.
Ruchelman P.L.L.C. provides a wide range of tax planning and legal services for foreign companies operating in the U.S., foreign financial institutions operating ...