Transfer Pricing

Last updated : 03-09-2021

Transfer pricing is a corner stone of our expertise. 

The Netherlands has extensive transfer pricing policies, for which it officially aligns with the OECD Report Transfer Pricing and
Multinational Enterprises, and the official Commentary thereon, unless explicitly determined otherwise. Where possible, appropriate or required, these guidelines have been supplemented with Dutch policy statements. 

The nexus for the Dutch transfer pricing regime is anchored in law by a codification of the arm's length principle, with an specific elaboration of the at arm's length principle, for intra-group financing activities (risk requirement). Substance requirements as such are not a part of the Dutch legal frame work for transfer pricing, but they are a cornerstone in the extensive written policy statements that regulate the possibility to obtain an Advance Tax Ruling (for for instance application of the participation exemption) and an Advance Pricing Agreement, or APA (for transfer pricing issues).   

Dutch tax law also provides for the obligation to document transfer pricing methods applied, and to keep documentation on file which substantiate that the internal transfer prices are indeed at arm’s length, and which method has been applied so substantiate this conclusion.

The Netherlands, like many other OECD member states, has also implemented mandatory reporting and filing requirements with regard to (amongst others) transfer pricing, like the ones arising from the Country by Country Reporting (BEPS), the Common Reporting Standards (CRS), and the Mandatory Disclosure Rules (DAC 6).  

Our team is very knowledgable and well experienced with transfer pricing issues, including

  • the design of a client's international transfer pricing policy,
  • the fiscal optimization in relation thereto,
  • arranging for appropriate benchmark studies to substantiate the transfer pricing,
  • the preparation of transfer pricing documentation, including internal transfer pricing policy statements, the drafting of appropriate agreements, cost allocation mechanism's, etc.    
  • the preparation and filing of the Master File and Local files, for compliance to the Country by Country Reporting obligations,
  • assessing the necessity for a client or an intermediary to report a specific arrangement on the basis of Mandatory Disclosure Rules (DAC 6. )
  • providing assurance for being compliant to applicable Dutch and international (OECD) transfer pricing standards and applicable transfer pricing documentation and filing requirements.