Webinar Seri Tax Audit and Tax Dispute 4: Recent Updates and Case Study on Transfer Pricing Disputes

Overview:

During these recent times, transfer pricing is still one of the hottest topics, both within the global and domestic tax practice. Following the issuance of PMK-22/PMK.03/2020 on Advance Pricing Agreement (APA) which also covers the Arm’s Length Principle, multinational enterprises (MNEs) are required to make adjustments in accordance with the current transfer pricing regulations.

Hence taxpayers are faced with the risk of transfer pricing disputes, for example related to the use of transfer pricing methods and loss-making conditions of taxpayers with related party transactions.

Topics Covered:

• The key features of the new Ministry of Finance regulation PMK 22/PMK.03/2020 on the Implementing Guidelines for APA regarding the application of Arm’s Length Principle.
  • The changes of ALP implementation.
  • The extension of the concept of affiliated parties.
  • Market characteristics as a new comparability factor.
  • The recognition of secondary adjustments.
  • The application of arm’s length range: full range, or interquartile range
• Recent strategy regarding defending Transfer Pricing dispute.
  • TNMM as a sanity check to justify royalty payments.
  • Rationalization of losses in tax disputes.
  • Adjustments to independent transactions that are affected by affiliated party

Opening Speech:

Darussalam, S.E., Ak., CA., M.Si., LL.M Int. Tax.

Managing Partner DDTC

Moderator:

Adinda Nur Larasati, S.E., B.Com.

Specialist Transfer Pricing Services DDTC