If a company in one country (A) sells goods or services to a company another country (B) and the two companies have the same owners, the tax agencies in the two countries may challenge the price of the transactions. If the price is low the Tax Agency of country A might not accept the that price as it would lead to a low tax revenue for country A.
If the price is high the Tax Agency of country B might be discontent as the profits and taxes would to a large extent arise in country A. To solve such problems there must be a common internationally accepted principle. Since many years the market price principle (or the arm's length principle) is accepted in most countries in the world. But what is a market price? And how will a market price be determined? We can help you with such issues!
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We have contacts worldwide. Skattepunkten AB is a member of ETL European Tax and Law.
This membership allow us to benefit from the expertise of tax experts in 48 countries.
We also work closely with accountants, business lawyers and insurance brokers.