Transfer Pricing Regulations in Turkey
Transfer pricing is the term for describing pricing arrangements for goods, services, intangibles, loans and other financial transactions between related business entities, shareholders or directors. Intercom transactions for service or goods should be fairly priced for avoiding the covered capital or cash pooling transfers.
Intercom transactions are getting more and more complex at todays business conditions. Transfer pricing is a inevitable necessity for intercom transactions for both international and national companies. Companies should consider risk management with increasingly more group companies with corporate governance and trade policies for optimising the profit and planning. With that aspect, transfer pricing is the one of primery topic for taxpayers.
Tax authorities are strongly concerned about artificial profit transfer between companies for minimazing the tax bases for advantage of different tax schemes between different countries. Turkey has initiated the Transfer Pricing Regulations since 2007. Turkish tax authorities focused on transfer pricing legislation as a part of new regulations. Transfer Pricing documentation is an obligation for related companies since 2007 January with declared additional explanations and methodology by Turkish Ministry of Finance.
We offer transfer pricing services for our clients which complies with Turkish Regulations. Our Transfer Pricing process in order as follows;
- Set your responsibilities under the light of new regulations,
- Prepare function and risk analyses according to your transactions with directors, parent companies, shareholders or oher related parties.
- Guidelining the our clients transfer pricing
- Adjusting our clients transfer pricing policies according to the Turkish legislations,
- Preparing all required documentations according to the transfer pricing rules,
- Perform transfer pricing
- Completing procedures and applications according to Turkish Regulations.
- Act of Resolution if cash pooling needed