Unlocking Growth: The Benefits of Transfer Pricing with Moores Rowland
January 2024
The corporate tax season is rapidly approaching. The time is now to make sure your business is on the right side of the tax office when it comes to filing. Especially if your firm will be transfer pricing inter-company sales, fees, costs or deductible expenses. While it often faces scrutiny for potential abuse, when implemented transparently and ethically by Moores Rowland Indonesia, transfer pricing offers a range of benefits that contribute to the efficiency and success of multi-party businesses.
- Optimizing Tax Efficiency
One of the primary benefits of transfer pricing is its role in optimizing tax efficiency. By strategically setting prices for inter-company transactions, companies can manage their overall tax liabilities more effectively. Moores Rowland’s expert transfer pricing studies show what range of inter-company (related party) fees, costs or expenses would be accepted by the tax office. Using the same database as the Indonesia tax office, Moores Rowland guides its clients in determining arm’s length prices among different jurisdictions in a way that aligns with local tax regulations, and minimizes overall tax burdens.
- Risk Management
Moores Rowland transfer pricing provides a structured framework for managing the documentation and risks associated with cross-border transactions, and so as to not run afoul of the tax office. By using Moores Rowland’s clear guidelines and methodologies, companies can reduce the risk of expensive disputes with tax authorities. This not only helps in avoiding potentially costly legal battles, but also ensures a stable and predictable global environment in which to operate.? -
Encouraging Investment and Innovation
Transfer pricing facilitates the movement of resources within a multinational corporation, encouraging investment in different jurisdictions. This can lead to increased innovation and specialization as companies allocate resources to areas where they can maximize their competitive advantage. Moores Rowland can assist companies looking to concentrate their research and development activities in a country with favorable tax incentives, thereby fostering innovation and technological advancements.? -
Enhancing Resource Allocation
Effective transfer pricing allows companies to allocate resources efficiently across their global operations. This enables businesses to capitalize on cost advantages in certain regions, such as lower production costs or access to skilled labor. By aligning transfer pricing with their business objectives, Moores Rowland clients make informed decisions on where to invest and allocate resources, ultimately improving overall operational efficiency.? -
Compliance with International Standards
Adhering to Moores Rowland’s transfer pricing principles helps companies comply with international standards and regulations. Compliance with these standards not only enhances a company's reputation, but also minimizes the risk of legal challenges and penalties.?
Moores Rowland is not just a compliance service, however. The firm’s transfer pricing expertise is a valuable tool for planning and keeping within tax office guidelines, and it provides numerous benefits, including tax optimization, risk management, enhanced resource allocation, and compliance with international standards. Moores Rowland also provides value added planning and helps prepare proper transfer pricing documentation that saves companies a lot of time and money if engaged early on in the process.
Dicky Darmawi, Tax Division Head
contact-jakarta@moores-rowland.com
+62 21 720 2605