Post by shikapatho on Oct 19, 2023 0:44:45 GMT -5
When we deal with Transfer Pricing in accordance with OECD guidelines, some transactions that are not understood in Brazilian legislation always come to light, such as.
There is no universally accepted definition of corporate restructuring, but we can say that corporate restructuring refers to the reorganization of commercial or financial relationships between associated companies, including the termination or substantial renegotiation of existing agreements. Relationships with third parties (e.g. suppliers, subcontractors, customers) may be a reason for restructuring or be affected by it
Conversion of full distributors (i.e. companies with a relatively higher whatsapp database level of functions and risks) into limited risk distributors, traders, sales agents or commission agents a associated foreign company that can operate as principal.
Conversion of full-fledged manufacturers (i.e. companies with a relatively higher level of functions and risks) into contract manufacturers or toll manufacturers for an associated foreign company that can act as principal.
Transfers of intangibles or rights to intangibles to a central entity within the group.
The concentration of functions in a regional or central entity, with the corresponding reduction in the scope or scale of functions performed locally; examples may include purchasing, sales support, supply chain logistics.
Business Restructuring in the OECD TP
When analyzing whether restructuring activities may be relevant from a TP perspective, taxpayers may consider the following aspects, based on the OECD Transfer Pricing guidelines
Reallocation of profit potential. If profit potential is reallocated, an indemnity payment may be guaranteed to the entity that has such potential in the form of transferred functions and/or risks.
This reshuffling often occurs when the functional profile of an entity changes. This may be particularly the case when converting an entity's functional profile from full risk to limited risk, for example for distribution or manufacturing activities.
There is no universally accepted definition of corporate restructuring, but we can say that corporate restructuring refers to the reorganization of commercial or financial relationships between associated companies, including the termination or substantial renegotiation of existing agreements. Relationships with third parties (e.g. suppliers, subcontractors, customers) may be a reason for restructuring or be affected by it
Conversion of full distributors (i.e. companies with a relatively higher whatsapp database level of functions and risks) into limited risk distributors, traders, sales agents or commission agents a associated foreign company that can operate as principal.
Conversion of full-fledged manufacturers (i.e. companies with a relatively higher level of functions and risks) into contract manufacturers or toll manufacturers for an associated foreign company that can act as principal.
Transfers of intangibles or rights to intangibles to a central entity within the group.
The concentration of functions in a regional or central entity, with the corresponding reduction in the scope or scale of functions performed locally; examples may include purchasing, sales support, supply chain logistics.
Business Restructuring in the OECD TP
When analyzing whether restructuring activities may be relevant from a TP perspective, taxpayers may consider the following aspects, based on the OECD Transfer Pricing guidelines
Reallocation of profit potential. If profit potential is reallocated, an indemnity payment may be guaranteed to the entity that has such potential in the form of transferred functions and/or risks.
This reshuffling often occurs when the functional profile of an entity changes. This may be particularly the case when converting an entity's functional profile from full risk to limited risk, for example for distribution or manufacturing activities.