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Transfer Prices are the prices agreed in economic transactions of any kind, carried out between related parties.
Their purpose is to ensure the taxable income of business groups operating in different countries, preventing the avoidance of taxes payable in Spain.
The tax legislations of the different countries and tax treaties have incorporated specific rules on transfer prices to prevent that the transfer prices agreed are other than market prices, achieving a more favourable tax treatment.
Transfer prices shall be determined in accordance with valuation methods and tax criteria, aiming to ensure that they reflect market conditions.
We assist in documenting, valuing and justifying market values in transactions between companies belonging to the same group.