A multinational company that transacts with related parties must comply with the Latvian transfer pricing legislation, which requires that transactions with related parties be priced at arm's length. Transfer pricing affects the profit or loss of a group company, so it is important to prepare information on how transfer pricing is determined in practice. The BDO Latvia team is ready to share its experience in solving transfer pricing challenges.

The BDO transfer pricing expert team offers:

• Development and implementation of transfer pricing processes for group companies
• functional analysis of mutual controlled transactions; 
• determination of remuneration corresponding to the market price for each group company involved in the transaction;
• implementation of transfer pricing at the level of internal company processes.
• Consulting on all transfer pricing issues.

Support and assistance in various transfer pricing issues:

• during transfer pricing audits;
• in transfer pricing disputes with tax administrations;
• in unilateral, bilateral or multilateral advance pricing procedures (APA); 
• in mutual agreement procedures (MAP).

Transfer pricing planning:

• functional analysis of planned transactions;
• selection of transfer pricing method;
• determination of indicative market price.

Long-term solutions for transfer pricing risk control:

• compliance of financial capacity with the risk assumed;
• compliance of the economic substance of transactions with the legal form;
• preparation or review of contracts.

Preparation of documents necessary to substantiate the market price of controlled transactions:

• Local file;
• Global file;
• Simplified Transfer Pricing Documentation;
• Country-by-Country Report of an international group of companies.
• Preparation of transfer pricing documentation in a limited scope for specific transactions.
• Preparation of a report on controlled transactions.
• Updating of previous transfer pricing documentation.
• Development of samples of comparable market data.
• Review of documentation prepared by the client and provision of a second opinion.
• Preparation of transfer pricing policies, etc. documents necessary for the company.