Transactions of local affiliates, subsidiaries and branches of multinational enterprises with their head offices, parent or other members of the group may attract transfer pricing issues. The same is true for local business conglomerates where a member of the group enjoys tax incentives or preferential tax treatment under existing laws.

The Philippines generally adheres to the OECD rules on transfer pricing. Revenue Regulation No. 2-2013, issued on January of 2013, embodies the transfer pricing guidelines in the Philippines. It requires contemporaneous transfer pricing documentation for related party transactions.

5.1 Transfer Pricing Studies and Advisory

Managing related party transactions is increasingly critical. We provide comprehensive transfer pricing solutions, based on OECD guidelines and under Philippine rules. Our transfer pricing team can assist you through transfer pricing risk assessment, planning and benchmark analysis and selecting the appropriate transfer pricing systems and method. In case of mergers and acquisitions, we can help you integrate the different transfer pricing systems to optimize allocation of resources.

5.2 Transfer Pricing Documentation

The tax authorities require transfer pricing documentation to be contemporaneous and be available for their inspection upon notice. We can help you in the preparation of transfer pricing documentation in accordance with the requirement of the tax authorities, or documentation for internal transfer pricing policies. We can likewise assist in the preparation and documentation of intercompany agreements, contracts or arrangements.

5.3 Transfer Pricing Defense

We can assist in defending transfer pricing policies on your behalf. We can negotiate Advance Pricing Agreements (APAs) with the tax authorities as well as represent you in mutual agreement and arbitration procedures.