We advise the management bodies of local and multinational groups of companies in issues concerning transfer pricing of intra-group transactions and, if necessary, in the preparation of the relevant compliance documents. We also assist in preparing transfer pricing policies in order that future transactions are priced in accordance with the local as well as international regulations.
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The order No. 1K-123 issued by the finance minister of Lithuania in 2004 states the obligation for every company which has a turnover above 3 mil. EUR to prepare annual transfer pricing documentations for every transaction (or group of transactions) with associated parties valued separately or together above 90 thousand EUR.
Tax administrators in Lithuania as well as all over the world give exceptional attention to transfer pricing, initiate tax audits, analyse the transfer prices applied between associated parties and if discrepancies are found – the administrator then adjusts the tax base and issues fines as well as late payment interest fees.
We in Grant Thornton have an experienced team and the most modern tools so that we could help Your company find the most pragmatic and effective solutions for ensuring sufficient compliance and the minimisation of tax risk in the often quite technically complex area of transfer pricing.
The team has extensive experience in preparing transfer pricing documentations and policies, providing transfer pricing risk assessments, advice regarding non-typical situations and various other services to large multinationals as well as mid-sized Lithuanian companies. We have worked with numerous different clients from various sectors including contract manufacturing, software development, wholesale trade, agriculture, oil & gas, agriculture, logistics and many others.
We have extensive experience in applying all 5 of the internationally recognised transfer pricing methods (Comparable uncontrolled price (CUP) method, Resale price method (RPM), Cost plus method, Profit split method and the most common - Transaction net margin method (TNMM) that utilises benchmarking studies which we conduct by utilising specialised databases (AMADEUS, RoyaltyRange, TaxBenchmark etc.).