Transfer Pricing

With the continuous expansion of global economy and as a result of the increase at international investments and corporations, global business has also started to switch its identity.

This continuous motion which started by the usage of external sources, created large scaled and international group firms. Regardless of their scale, companies make their product design in one country, produce the products in another country and sell these products within the global market in several countries.

The several rings of this added value chain are formed by the entities of the same group that are resided in different countries. As this added value chain starts to function, in one day several trade interactions occur within the rings of the chain, in a more lean description several related party transactions occur.

Throughout the world, it is noted that, 60% of the total trade transactions are done among related parties or individuals, which means that 2 out of 3 trade transactions are within the jurisdiction of Transfer Pricing Policies and Regulations.

The continuous improvements with the investment tendencies, the increased rate of product, service or capital movements are the two factors that put an intense emphasis on the Transfer Pricing by the Tax and Financial Operations Offices, which directly affects the taxpayers.