- Transfer Pricing
The up rise of globalization in these modern times has resulted in the rapid growth of multinational trade and cross-border intercompany transactions. Subsequently, tax authorities worldwide are increasingly aware to defend their domestic tax bases with intense scrutiny. In line with this, stronger transfer pricing legislations are introduced, including its increased documentation requirements, stiffer penalties for non-compliance, increased information exchange, improved audit staff training and increased inspections and specializations. Although transfer pricing guidelines has been developed by the OECD, which forms the corner-stone for the global tax community, many variants in domestic legislations still exist including among others in Indonesia.
Our multidisciplinary team of transfer pricing specialists are experienced in providing assistance to clients from various business backgrounds in the increasing compliance requirements of transfer pricing legislation. To that effect, we are pleased to assist our clients in the following matters:
- Transfer Pricing Compliance
- Transfer Pricing Documentation studies, to evaluate the extent to which transfer prices are consistent with the arm's-length standard as required under Indonesian tax regulation, as well as the OECD Transfer Pricing Guidelines. The scope of a transfer pricing documentation study is customized to address the specific needs of a company relative to the complexity and magnitude of the transactions, number of affiliated members, and geographical regions involved.
- Advance Pricing Agreements, which can be used as an effective tool to negotiate a company¬specific arrangement with: (i) domestic and international tax authorities in order to reduce uncertainty and risk, (ii) provide more assurance against income reallocations, and (iii) manage audits. APAs can be entered into on a unilateral, bilateral, or multilateral basis.
- Intercompany policy and implementation guide-lines design, which are created to assist a company in applying and monitoring its intercompany transfer pricing strategies. The objective of utilizing these documents and resources is to standardize and harmonize company-wide global transfer pricing policies, align and synchronize these with management evaluation principles, and provide additional support in the event of an audit. Creating this consistent framework provides credibility to performance measures and instills a sense of equity with respect to how intercompany transactions occur.
- Intercompany agreements drafting, to provide a consistent framework to formalize intercompany transfer pricing policies. These documents also present a "form" over "substance" argument upon a potential audit. This will become increasingly important and is already necessary for a number of tax authorities in countries that may give more credence to intercompany transactions that follow the "letter" of agreements, versus the discretion of taxpayers to set transfer prices. Inter-company agreements include technology, trademark, cost-sharing, market expansion, services, and loan agreements, among others.
- Transfer Pricing Audit Defense and Litigation
- Defending your company's transfer pricing, including
(i) developing economic analyses to defend arm's-length pricing strategies,
(ii) evaluating and critiquing transfer pricing methodologies and adjustments proposed by tax authority,
(iii) recommending sound audit defense approaches,
(iv) and providing responses to tax authority;
- Dispute resolutions and negotiations generally involve face-to-face interactions with tax authority to assist in rebutting proposed reassess-ments of income by a tax authority, and preparing companies for litigation, APAs, audit settlements, or Competent Authority proceedings;
- Competent Authority submissions with respect to preparing and filing required documents to resolve double taxation disputes; and
- Litigation support and testimony, providing tax attorneys to represent your company in the tax court, litigation testimony, depositions, and strategy consulting, as well as the creation of submission reports, advocacy position papers, affidavits, and expert witness testimony.
- General Tax Compliance and Tax Litigation
- Tax Advisory
As tax regulations are becoming increasingly complex and obscure, tax compliance is an important issue to consider in order to avoid possible penalties in non-compliance situations. We provide advisory for such tax compliance issues, thereby also considering alternative and innovative options so as to optimize the tax burden of our clients.
- Tax Compliance
Under self assessment system, person who is liable to tax is required to register, calculate, withhold, pay taxes and submit tax returns to tax office autonomously. That process require meticulous work and understanding of Indonesia tax system. We could assist you and do that work for you, so you could focus on your business, and let the tax work done by us.
- Tax Review
Tax review is an in-depth analysis of a company's tax exposure. Most companies often assumes that they are in compliance with tax regulations, however tax regulations are updated frequently and Indonesian complex tax regulations could give rise to multi interpretation, thus exposing to risks for unintentional non compliant. The result of a tax review is a report analysis which identifies the risks and exposures as well as solutions to mitigate these risks.
- Tax Audit Defense and Litigation
- Defending your company's tax position, including
(i) evaluating and challenging tax audit techniques and adjustments proposed by tax authority,
(ii) recommending sound audit defense approaches,
(iii) and providing responses to tax authority;
- Dispute resolutions and discussion generally involve face-to-face interactions with tax authority to assist in rebutting proposed reassess-ments of income by a tax authority, and preparing companies for litigation, audit settlements, or Competent Authority proceedings; and
- Litigation support and testimony, providing tax attorneys to represent your company in the tax court providing litigation testimony, depositions, and strategy consulting, as well as the creation of submission reports, advocacy position papers, affidavits, and expert witness testimony.
- Tax Research and Training
- Tax research, education and training
Providing tax related training to any interested parties, including the following subjects:
- Income Tax Law
- Value Added Tax Law
- General Tax Law Provisions & Procedures
- Taxation of Mergers & Acquisitions
- Tax Treatment of Hybrid Entities and Financial Instruments
- Fundamentals of International Taxation
- Interpretation and the Application of Tax Treaty Law
- Permanent Establishment
- Transfer Pricing - General and Specific Industry (Automotive, Pharmaceuticals, Commodities, Manufacturer and Distributor, etc)
- Fundamentals of International Tax Planning
- Cross-border Expatriate Taxation
- Taxation for Artist, Entertainer, Sportsman and Speakers
- Tax Dispute settlement in The Tax Court
- Tax Due Diligence
- Basic Tax Research Skills
- Consultation for taxation education
We are also involved as university councilors to compile practicable tax course syllabus based on acknowledge scientific literature, including the latest developments on international taxation, so as to maintain quality in colleges. Further, we regularly provide training colleges to postgraduate students or those with interest in tax research.
The materials given are:
- Taxation Research as Legal Research
- Taxation Research as Economic Research
- Taxation Research as Accounting Research
- Taxation Research as Political Science Research
- Taxation Research as Social Policy Research
Furthermore, we also provide in-house training and workshop for corporate, associations and other organizations in accordance with our client’s need.
- Tax Publication
We regularly publish tax news and scientific articles in books, newspapers, journals and magazines about the latest taxation issues in Indonesia and other countries. The articles published are the combination of descriptive and argumentative style with suggestion given for the tax policy makers in Indonesia and can be used as tax planning tools for entrepreneurs.
- Tax Policy, Law and Administration Analysis
Tax policies and regulations stipulated by the government and approved by House of Representative (DPR) could be felt "unfair" for some businesses and certain parties. Therefore, we are also focused to critical analysis, so as to improve tax policies and regulations in Indonesia in accordance with right principles of taxation which corresponds to international standards.
- Advocacy in taxation area for public interest
We also develop relevant course materials for academics, law practitioners, journalists and those highly involved with tax matters in Indonesia, which consist among others as follow:
- Comparative Income Tax System;
- Comparative Tax Administration;
- Comparative Constitutional in Tax Law.
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