Who the local file is for
Local transfer pricing documentation is mandatory for companies that carry out transactions with related parties. Preparing it ahead of any audit, or as part of tax planning, reduces the risk of a dispute over the price applied. The service suits companies that already know the rationale behind their pricing and need the documentation obligation settled in the required form.
When to prepare the documentation
The documentation is best prepared well before the deadline, so that it can be submitted to the tax authority on request. Preparing it alongside the transaction allows the economic facts to be mapped precisely and avoids errors of form and content. Documentation that is detailed and credible can, in an audit, provide solid support for the position taken by the taxable person.