Who are concerned?

We recommend our transfer pricing documentation service to companies that have active business relationships with their related parties (e.g. through the delivery of goods or services, or through financial or other transactions).

What are your benefits?

The tax authority checks as a priority of its tax inspections whether a business has established the transfer prices of transactions with its related parties correctly. If a business has prepared transfer pricing documentation in line with the applicable regulations, it is the tax authority’s burden to prove that the applied prices are different from the arm’s length prices.

The tax authority is authorised to charge a default penalty if the business does not have transfer pricing documentation. Moreover, the content of the documentation is also important as the documentation determines whether the tax base needs to be adjusted with regard to the prices applied between related parties. If the enterprise does not have proper transfer pricing documentation, then it will be required to prove during the inspection that the applied prices were correct. Moreover, the tax authority also has the right to impose a penalty of as much as HUF 2 million per contract for any missing documentation.

What we do

Our experts specialised in the field of taxation can prepare transfer pricing documentation for your business, review your existing documentation and give you expert advice on how to determine your transfer prices.

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