1. Introduction A trаnѕfеr price is thе price at which goods оr ѕеrviсеѕ аrе trаnѕfеrrеd form one рrосеѕѕ or dераrtmеnt to аnоthеr or fоrm one mеmbеr оf a grоuр to another. Trаnѕfеr pricing is used whеn divisions оf аn оrgаnizаtiоn need tо charge оthеr divisions оf thе оrgаnizаtiоn for gооdѕ or services thеу provide tо … Read more
Transfer pricing methodology in Management Fee agreements could turn to be very problematic for related party transactions. The main reason is that the agreements are not usually based on specific financial terms, but the service provider is charging a gross amount on a monthly on annual basis, without provisioning the amount of work which is … Read more
The objective of IAS 24 Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties. Related party … Read more
REPUBLIC OF CYPRUS MINISTRY OF FINANCE Ref. No.: 05.13.001 Interpretative Circular 3 — Income Tax June 30th, 2017 To all Assessing Staff Tax treatment of intra-group back-to-back financial arrangements 1. Definitions 1. This Circular applies to any company carrying out group financing transactions (hereinafter referred to as a group financing company) meaning any entity that … Read more