What is Transfer Pricing?​

TP documentation is a document substantiating the transaction(s) between related parties, which facilitates the defence of transactions in cases of disagreement with the State Revenue Service (hereinafter - SRS).

The aim:​

The purpose of the TP documentation is to determine the market prices to apply for CIT purposes between related parties and to ensure that entities in your group have sufficient evidence that the prices applied to their inter-company transactions correspond to arm’s length principle.

Benefits of transfer pricing:

  • Pricing and substantiation of transaction market prices​
  • Protection document in case of SRS audit​
  • The results may also be used in disputes with counterparties, minority shareholders or third parties that are legally involved.​
Transfer pricing Transfer pricing guide Read more
Transfer pricing Transfer pricing regulation in Latvia