Transfer Pricing Advisory in Indonesia
Transfer pricing advisory is required to resolve complex transfer pricing issues. Tax authorities around the world enforce stringent regulations to protect their tax revenues, with their primary concerns relating to cross-border business transactions. It is important that these transactions follow the globally accepted arm’s length principle, and are documented per domestic tax laws.
Transfer Pricing Advisory: An Overview
Transfer pricing is now regarded as a significant issue by tax authorities as it can be used to transfer assets and income between jurisdictions with favorable tax rates. Indonesian tax authorities address this issue by implementing detailed Transfer Pricing regulations and complex documentation requirements.
Transfer Pricing Advisory with Indo Prime Indonesia
The key to determining your Transfer Pricing setting is your business model. Our Transfer Pricing advisory services are distinguished by your business needs while also adhering to Indonesian legal requirements and international best practices.
Our team can provide you with the following services based on our extensive experience in transfer pricing:
- Determining the arm’s length price range in respect of the proposed related party transactions such as cost-plus mark-up analysis and arm’s length net margin range.
- Reviewing the existing value chain to identify any areas of risk and opportunities to improve existing Transfer Pricing policies.
- Reviewing intercompany agreements to they are compliant from a Transfer Pricing perspective.
- Royalty benchmarking to determine the arm’s length royalty payout for use of IP keeping in view the functional profile of the transacting entities.
- Managing cross-charge documentation, including benefit analysis and methodology for arm’s length cross-charge.
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Frequent Asked Questions
There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.
Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.
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