What is master transfer pricing?

The master file provides a global overview of the enterprise’s transfer pricing. It includes high level information about the company’s global operations and transfer pricing policy. The OECD has developed an outline of the information that should be included in the master file.

Who is required to prepare a master file?

Master file is a report on a multinational/international (MNE) group or its division, usually prepared by the parent company. This file provides information on group’s international business activities and its transfer pricing policies on the most usual transactions between its members.

What is a transfer pricing local file?

The local file focuses on information relevant to the transfer pricing analysis related to transactions taking place between a local country affiliate and associated enterprises in different countries and which are material in the context of the local country’s tax system.

What is Master File local file?

While the master file provides a high-level overview, the local file should provide more detailed information relating to specific material intercompany transactions. One of MNEs’ major concerns regarding the local file may be the varying thresholds of what constitutes a material transaction that must be documented.

Why is master file important?

The Master File is intended to provide tax administrations with an overview of the economic, legal, financial and tax arrangements within a MNE. It gives them a “blueprint” of the operations of that particular MNE. This helps them assess the transfer pricing position.

Do I need transfer pricing documentation?

The Dutch transfer pricing documentation is mandatory for purely Dutch companies and multinationals with a consolidated group turnover in the previous year of less than € 50 million. The Dutch transfer pricing documentation does not have fixed requirements.

What is employee master file?

A. M. A collection of records pertaining to one of the main subjects of an information system, such as customers, employees, products and vendors. Master files contain descriptive data, such as name and address, as well as summary information, such as amount due and year-to-date sales.

What is local file?

The Local File relates to a specific taxpayer in a specific country. This is usually a single legal entity. It delivers a more detailed overview of the related party transactions that are entered into by this taxpayer.

What is master filing?

A collection of records pertaining to one of the main subjects of an information system, such as customers, employees, products and vendors. Master files contain descriptive data, such as name and address, as well as summary information, such as amount due and year-to-date sales.

What is the difference between master file and transaction file?

Master file: contains records of permanent data types. master files are created at the time when you install yopur business. Transaction file: contains data which is used to update the records of master file for example address of the costumer etc.

What is customer master file?

The customer master file is used to maintain information in the accounting database that is unique to each customer. Examples of the information contained within the file are as follows: Customer address. Contact name and phone number. Sales representative name.

Is TP documentation important?

What does ‘audit ready’ TP documentation mean? ‘Audit ready’ TP documentation extends the focus beyond meeting local compliance requirements and provides additional support with respect to, and provides an effective first response to, aspects of the TP analysis on which a tax authority may ask questions.