Tipi Tips #5: Is transfer pricing part of a (tax) law?

Today’s topic is whether transfer pricing is part of a (tax) law.

Simply put: yes and no. The arm’s length principle is mentioned in many countries’ tax codes, but the exact rules how to apply transfer pricing are often not included. Transfer pricing is a grey area.

In the Netherlands, the tax authorities usually follow certain transfer pricing guidelines of organizations as the OECD or the EU. You can apply the transfer pricing rules using these guidelines. The Ministry of Finance also gives some specific guidance how to interpret the rules. But the essence is that it is not a hard law, but a soft law.

In short, transfer pricing rules are mainly soft law and a bit flexible, which is why you need an expert who knows what is possible and what is not. 

Transfer pricing made easy

Tipi's mission is to explain the field of transfer pricing to you in a transparent and simple manner. We deliver on this mission with expertise, experience and our unique approach. We expose all transfer pricing concepts (and secrets) in our database. Here you can learn the basics of transfer pricing for your business, and get an idea of the work we do to help you navigate the transfer pricing field.

Our transfer pricing services can be divided into three phases in which we can help:

Advance advice

Practical and clear advice based on our three pillars

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Clear and simple documentation afterwards

Let us inform you about the possibilities

Transfer pricing is the future of international taxation. Let us discuss how we can future-proof your business.

Vincent Maessen

Founder Tipi Consultancy