Transfer pricing

Transfer pricing concerns the pricing of goods, services, financing, and intellectual property transfers between related enterprises. Swiss tax practice generally expects related-party dealings to reflect the arm’s length principle, so taxable profits are not shifted away from the jurisdiction improperly. Documentation, comparability analysis, and consistent contracts are important, especially for multinational groups. Adjustments may affect corporate income tax, withholding tax, VAT, customs, and treaty relief. Advance pricing arrangements or rulings may reduce uncertainty where available.