Transfer Pricing

Transfer Pricing Documentation

Transfer Pricing Documentation

NERA's approach to transfer pricing documentation aims to combine compliance-oriented and policy-guiding approaches by developing intercompany pricing policies grounded in sound business strategy and well-established economic principles. Our thorough analysis of the industry structure and its value chain combined with rigorous analytical methodologies and clear presentation of the results allow us to develop transfer pricing solutions that meet both our clients’ business objectives and the arm’s length requirements imposed by national tax authorities.

Masterfile Documentation

A "masterfile" approach to transfer pricing documentation is a practical and cost-efficient solution for MNCs with operations in a group of countries that follow a common set of transfer pricing principles, such as those outlined in the OECD Transfer Pricing Guidelines or in the Pacific Association of Tax Administrators documentation requirements.

Best practices in creating masterfiles combine the centralized approach to documentation development with information gathering and review at the local level. NERA’s global network of transfer pricing experts provides MNCs with the capabilities to utilize our extensive data resources to implement this robust approach.

FIN 48 Support

FASB Interpretation No. 48 (FIN 48) outlines procedures for recognition and measurement of uncertain tax positions in order to record them on financial statements. In a transfer pricing context, the tax benefits are often considered equivalent to the lack of increased income recognition in a given country resulting from transfer pricing adjustments imposed by the local tax authorities. Transfer pricing has a significant impact on FIN 48 disclosures of MNCs.

NERA assists clients with several aspects of FIN 48 implementation including:

  • Reviewing intercompany transactions to determine the appropriate units of account and material income tax positions, and to create appropriate recognition and measurement methods.
  • Providing advice on audit policies and administrative procedures followed by the tax authorities in different countries.
  • Preparing transfer pricing documentation to inform management’s opinion that the tax position will "more likely than not" be sustained upon examination.
  • Setting up measurement procedures that involve calculating the amount of tax benefits related to transfer pricing, projecting alternative outcomes that might be realized in resolving the position, calculating probabilities of realization of each outcome, and cumulative probability analyses.
  • Creating an implementation process to update FIN 48 analysis on a quarterly and annual basis.
Name Title Location Phone Email
Dr. Yves Hervé Senior Managing Director Frankfurt +49 69 710 447 508
Dr. Harlow Higinbotham Senior Managing Director Chicago +1 312 573 2803
Dr. Emmanuel Llinares Senior Managing Director
Head of Global Transfer Pricing
+33 1 70 75 01 93
+41 79 517 6895
+44 20 7659 8650
Philip de Homont Managing Director Frankfurt +49 69 710 447 502
Dr. Vladimir Starkov Managing Director Chicago +1 312 573 2806
Tom Braukmann Director Frankfurt +49 69 710 447 511
Alexis Jin Consultant Chicago +1 312 573 4804
Dr. Alexander Voegele Affiliated Consultant Frankfurt +49 69 710 447 501
Title Type Author
Referentenentwurf zur Funktionsverlagerungsverordnung: Erhöhtes Risiko von Streitverf... Published Article Dr. Jens Rubart and Ronald Bernstein
‘Coca-Cola’ vs. Section 482: Is It Time to Refresh the Regulatory Guidance? Published Article Dr. Harlow Higinbotham and Dr. Niraja Srinivasan
NERA Experts Contribute Chapter to "The Future of the Profit Split Method" Book Dr. Harlow Higginbotham and Dr. Vladimir Starkov
Transfer Pricing Roundtable in Financier Worldwide. Expert QA Dr. Vladimir Starkov and Philip de Homont
Amount B: Facts and Circumstances Matter—Even for Routine Distributors Published Article Dr. Harlow Higinbotham and Dr. Vladimir Starkov
Dr. Yves Hervé’s Interview in Financier Worldwide Report Dr. Yves Hervé
Taxation of the Digital Economy: Analysing User Base Value Published Article Dr. Yves Hervé and Philip de Homont
NERA Experts Comment on the OECD Proposal on Pillar One Blueprint Brief Dr. Harlow Higinbotham, Dr. Vladimir Starkov, Ralph Meghames, and Dr. Emmanuel Llinares
NERA Experts Author a Chapter in New Book on Transfer Pricing Developments Around the... Book Amanda Pletz
Assessing the Transfer Pricing Treatment of COVID-19 Restructuring Published Article Dr. Yves Hervé and Philip de Homont