Transfer pricing regulations and documentation requirements may differ slightly from country to country but are based on the same framework - the OECD Transfer Pricing Guidelines. The OECD coordinates international collaboration in the fight against shrinking tax bases and profit shifting.
One result of this global cooperation is the principle incorporated in the tax laws of countries (including Estonia, Latvia and Lithuania) that companies entering into transactions with related parties, such as companies belonging to the same group or business owners, must agree on transaction prices (transfer prices) based on the arm’s length principle. In addition, those companies must be prepared to prove it with competent transfer pricing documentation.
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Merko Ehitus is a group listed on the Tallinn Stock Exchange, whose companies construct buildings and infrastructure and energy installations and develop real estate. The group operates in Estonia, Latvia, Lithuania and Norway. We offer complete solutions in both the construction process and real estate development, from initial preparation to the warranty-period service. That is why we also have very high expectations for our advisors - it is important to understand our business and countries of operation, and we expect our advisers to offer pragmatic solutions that meet our needs and take into account all the necessary aspects.
The trans-Baltic co-operation started with Grant Thornton Baltic in 2019 has focused mainly on the issue of taxes, more specifically transfer prices. The cooperation so far has been pleasantly professional, correct and concrete. Our needs have been understood and acted upon.
At Grant Thornton Baltic, our tax and legal specialists as well as financial advisers, will assist you in all matters relating to transfer pricing. We will develop transfer pricing principles for your company or group that comply with internationally accepted methods and practices.
If your business takes place in different countries, we will assemble an international team of consultants, with whose help we will find a solution that suits you.
RIA.com Marketplaces is a very fast-growing international technology company, which is why we need a partner in tax and financial advice who is familiar with the rules of international taxation and can also orientate in the field of intellectual property.
Fortunately, in the form of Grant Thornton Baltic, we have found a very competent advisor with whom we have been cooperating since 2019. Grant Thornton's tax and financial advisors have been involved in valuing our company and preparing transfer pricing documentation. In the latter case, it was necessary to document and verify the compliance of the group's transfer prices with the market value according to the OECD international standard. As the basis of our business is software technology and intellectual property, this was a more difficult task for Grant Thornton Baltic's advisors than average, but they completed the work with high quality and on time.
I would like to single out the pleasant communication - the employees of Grant Thornton Baltic are very businesslike, friendly and polite communicators, with whom it is always a pleasure to work with.
Grant Thornton Baltic team:
For companies operating in Estonia, Latvia, Lithuania and the Scandinavian countries, we have created a team of advisors who know the details of transfer pricing rules in the above-mentioned countries. You can also find a brief overview of transfer pricing in our brochure.
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