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Due to globalization, multinational companies that have operations beyond their country of origin may find themselves in complex situations regarding intercompany pricing. With the stakes so high if transfer pricing goes wrong, it’s important that businesses get this right if using transfer pricing to increase of their margins of utility.
The principle of free competition governs companies with related parties, to determine if they can buy and sell products and services within the group, with prices lower or higher than those of market value. Transfer prices arise from the need to reduce disputes between the Tax Administrations, as well as those existing between these Administrations and the multinational companies in each country, avoiding costly litigation.
What are the transfer pricing rules and standards in Guatemala?
As of January 1, 2016, the "Special Rules for Valuation between Related Parties" have been brought back into force. These transfer pricing regulations were first introduced for Guatemala in May 2013 through Governmental Agreement No. 213-2013.
Transfer prices are significant for Guatemalan taxpayers who carry out transactions with their related parties abroad because they largely determine income and expenses – and, hence, taxable profits.
At RSM, we have extensive experience in the provision of professional transfer pricing services – so much so that we have an interdisciplinary team dedicated to providing timely solutions to this challenging legal requirement.
What professional transfer price services and solutions does RSM offer?
At RSM, we understand the importance of having thorough transfer pricing policies in place to ensure you remain compliant. Our transfer price and tax experts can offer the following services:
- Tax planning – Our experts will work with you to help you plan your transfer pricing for tax purposes, ensuring everything is fully transparent. We also offer tax administration support as part of our service.
- Pricing transfer studies – Our team will work with your business to understand the market value of your goods. Using this intelligence, we’ll help you formulate transfer pricing rules that work for your business.
- Party statement support – We’ll support you in the preparation of the related party statement, or other management requirements on transfer pricing.
- Restructuring of operations – We’ll work with you to ensure that your business is performing optimally and maximising profits.
- Contingency planning - We’ll conduct a thorough analysis of possible contingencies in relation to transfer prices.
- In-house training in transfer pricing – Using our years of expertise in transfer pricing, we’ll ensure your team have all the information they need to remain compliant and maximise profits.
- Advance price agreements – our transfer pricing specialists will liaise with public bodies to negotiate advance price agreements with the Tax Administration.