Form of government:Parliamentary republic
Area:78 866 km2
Currency:Czech Koruna (CZK)
Documentation on transfer prices in the Czech Republic
In the Czech Republic, as in any other EU country, there are requirements for documentation of transfer prices. That is, taxpayers who are engaged in trade and provision of services must document that their pricing policy is justified and consistent with local law. Documentation must be provided within the time period specified by tax legislation. The absence of a transfer pricing report may be recognized as a tax offense, for which Czech law provides for liability. The company may also be held liable due to incorrectly drawn up documents.
The preparation of documentation is fraught with difficulties, especially if there is no clear understanding of the nuances of the Czech tax legislation. For organizations doing business in the Czech Republic, Finance Business Service provides the services of lawyers with experience in drafting transfer pricing documentation. If necessary, we will definitely justify the pricing methodology chosen by the client. All documents comply with the requirements of the Income Tax Law and the Czech Tax Administration, as well as the OECD Directive.
- Professional advice to clients on the establishment of optimal transfer prices for various commercial transactions and margins. We give recommendations on improving the pricing policy that the company adheres to at the moment.
- If necessary, we draw up a legally competent application in order to require the tax authority to consider transfer prices.
- Analysis of already prepared pricing documentation. During the analysis, new judicial practice is taken into account.
- When identifying any risks caused by the use of transfer education, we develop ways to eliminate them;
- We represent the interests of the client in the tax authorities. Assistance in settling disputes provoked by the results of tax audits.