Transfer pricing is the process of pricing the exchange of goods and services between related parties. The foundation of transfer pricing is the arm’s length principle, which requires transactions between parties that are related to be conducted and priced as if the parties were not related. In a move to mitigate loss of tax revenue due to related party transactions that are not fairly priced, countries including Tanzania have introduced Transfer Pricing rules.

TP&Tax has a team of seasoned transfer pricing advisors with experience cutting across various sectors and jurisdictions. We assist companies with related party transactions through all aspects of their transfer pricing management lifecycle, including planning, implementation, compliance, and audit conducted by the revenue authority.

Foreign companies investing in Africa, need to proactively consider how to structure their related party transactions in a seamless manner that is consistent with the arm’s length principle. We are available to assist you in designing, documenting, and implementing a transfer pricing policy that achieves the above objectives.

Transfer pricing is evolving by the day and Governments are investing in capacity in order to keep up with the global trends. Revenue Authorities like Tanzania have special units for conducting transfer pricing audits, who perform a more robust review of a taxpayer’s transfer pricing affairs. Our team of seasoned transfer pricing professionals is equipped with international and local experience, global perspectives and good working relationships with the tax authorities to provide exceptional client experience during the transfer pricing audit and dispute resolution process.

In summary, our transfer pricing services include but not limited to:

• Transfer pricing planning and implementation.
• Preparation and review of transfer pricing documents.
• Domesticating transfer pricing documents prepared by the
• Performing benchmarking analyses.
• Review of intercompany agreements from a transfer pricing perspective.
• Assisting with transfer pricing audits conducted by the revenue authority.

A wise man once said, “tax compliance is cheaper than non-compliance” and “ignorance of the law is not an excuse”. Taxation as a subject is broad, technical, and the tax laws are very dynamic. Our team of tax professionals are available to ensure that you are compliant with the tax laws while you focus on your core business. We shall work with the internal finance or tax team to remind you of the key statutory deadlines, assist with computing the taxes due and filing the tax returns with the revenue authority.

Our team of seasoned advisors are also available to proactively assist you in assessing the tax implications when entering into transactions. This minimizes the risk of future additional tax liabilities which are usually accompanied by excessive interests for late payment of taxes and penalties. We help you ensure that your tax positions are practically and properly aligned with your business operations.

Generally, our tax compliance and advisory services are broad and may entail but not limited to the following:

• Preparation, review and filing of tax returns.
• Ad hoc advisory services including advice on the tax implications arising on different transactions and organization structures.
• International taxation advisory.
• Tax health-check services.
• VAT refund application

Our deep industry experience and excellent relationships with the relevant tax and regulatory authorities, enables us to support our clients during tax review and investigation exercises. Our aim is to lessen you off the stress of liaising with the revenue authority in drafting responses to their queries and providing clarifications supported by provisions of the law, with an end goal of arriving at an accurate tax liability.

Our services include but not limited to the following:

• Documenting and substantiating transactions and positions for tax audit readiness.
• Liaising with the tax revenue authority auditors and strategically responding to queries raised at all stages of the tax audit.
• Filing objections against tax assessments and representation at the Tax Revenue Appeals Board.

Our team comprises of certified accountants with many years of experience and expertise in accounting and financial advisory. Our approach is client-centric, geared towards delivering customized business solutions that deliver lasting value to clients’ businesses. Based on deep understanding of your business and objectives, our dedicated team of professionals offer tailor-made and innovative advisory solutions. Our commitment is to ensure that business objectives are achieved without compromising on professionalism.

Generally, our services include but are not limited to the following:

• Financial planning and restructuring services.
• Bookkeeping services.
• Managing funds account to settle payments as approved by clients.
• Preparation of reports necessary to communicate the financial position of the entity.
• Provision of support in budgeting and forecasting activities, and continuous monitoring of the actual position against budgeted position.
• Payroll services.