transfer pricing in Russia

IT approach to transfer pricing


New Transfer pricing rules now apply to related party and cross-border transactions involving:

  • Natural resources, such as oil, metals, and mineral fertilizers
  • Transactions in which a party is registered or resides in a blacklisted tax jurisdiction, provided that the aggregate value of these transactions exceeds RUR 60 million.

Within Russia, transfer pricing rules will apply to related party transactions only.

Under the new rules, taxpayers are required to provide tax authorities with reports on controlled transactions. These reports should indicate the calendar year to which they refer, the subject of the transaction, information on the parties of the transactions, and revenue received from such transactions.

How can we help?

  • Analysis of transfer pricing risks taking into account the new rules and recommendations to minimize such risks
  • Development of transfer pricing strategy and recommendations on how to implement it
  • Advice on how to select and apply the appropriate transfer pricing methods
  • Support in preparing the necessary transfer pricing documentation
  • Information systems for transfer pricing documentation
  • Support in transfer pricing reporting
  • Support in tax disputes and tax audits
  • Support and advice on any other issues related to transfer pricing and taxes in general.


IT approach to Transfer Pricing – reporting automation

The document flow and reporting for transfer pricing require a separated accounting approach, which can be effectively implemented through complex information systems.

Such services are mostly required by international organizations operating in Russia. In view of the high demand for these services, we offer an even wider approach to Transfer Pricing by providing IT assistance for companies, which are required to use this method of tax planning.

Areas:

  • Automation of preparation of reporting documents to be filed with authorities to support transfer pricing policy and calculations
  • Automation of calculations regarding profitability for controlled transactions. This system analyzes accounting data and automatically prepares information about the profitability of selected transactions, allowing a detailed allocation of different types of costs in a real-time view
  • Automation of analysis of comparable transactions on the market using open sources


For project details and other enquiries, please contact Alexander Ermakov via e-mail Alexander.Ermakov@hku.ru or call +7 812 244 7549.
 


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