Did you know that a transfer pricing analysis is not forever?
Transfer pricing analyses are valid, as a rule, for no more than three years. This means that most analyses prepared in 2019 are no longer valid in 2022 and need to be updated.
Properly prepared transfer pricing analyses, in addition to being a mandatory element of transfer pricing documentation, are also an important transfer pricing risk management tool. The results of the analysis form the basis of the statement on the marketability of the transaction and are reported in the TPR-C forms.
– If the last analyses were prepared for 2019, an update for 2022 is required. – Cyprian Werykowski, tax adviser, director at Thedy & Partners, reminds.
The deadline for preparing local transfer pricing documentation is 10 months after the end of the tax year. In practice, in most cases the deadline is 31 October 2023, so it is worth starting work now.
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