Fundamentals of Transfer Pricing : Principles and Practice

Fundamentals of Transfer Pricing Volume 1: Principles and Practice Edited by Raffaele Petruzzi, Giammarco Cottani & Michael Lang Transfer pricing is one of the most important and complex topics in international taxation. Recognising its significance, most countries in the world have introduced transfer pricing rules in their domestic tax systems. This book, the first of a three-volume series, explains in a clear and simple manner the most important transfer pricing topics, with a collection of incisive and wide-ranging perspectives from representatives of academia, tax law practice, multinational companies, advisory groups, national tax authorities, and international organisations from all over the globe. The contributions collectively offer a comprehensive guide to the practical application of transfer pricing rules, covering various aspects as the following: introduction to transfer pricing; accurate delineation and recognition of actual transactions; transfer pricing methods; comparability analysis; transfer pricing audits and litigation; administrative approaches to preventing and resolving transfer pricing disputes; transfer pricing documentation; attribution of profits to permanent establishments; transfer pricing and specific transactions; use of new technologies in transfer pricing; and interplay between transfer pricing and other rules. This book delves into both foundational concepts and emerging trends in transfer pricing, providing readers with the tools to understand its dynamic application in real-world scenarios. By analysing examples, case studies, and the implications of recent judicial precedents, it bridges the gap between fundamental principles and practical implementations. The application of transfer pricing legislation remains one of the most challenging tasks for taxpayers and tax authorities around the world. With this comprehensive source of practical guidance, tax lawyers, in-house tax counsels, government officials, academics, advisory firms, and the business community worldwide will have all the support they need to move forward in tackling this complex aspect of the current tax environment.

Dr Raffaele Petruzzi, LLM is the managing director of the WU Transfer Pricing Center at the Institute for Austrian and International Tax Law at WU (Vienna University of Economics and Business), the founder and CEO of PETRUZZI Advisory, and an independent advisor on international tax and transfer pricing matters. He is also a member of the United Nations Subcommittee on Transfer Pricing. Raffaele gained extensive experience by working for many years within big four firms, international law firms, and in-house positions. He regularly advises clients across numerous industries on international tax and transfer pricing issues and provides assistance on risk management and compliance, international tax planning and strategy, policy design and implementation, valuation of companies and intangible assets, tax audit defence, implementation of mechanisms of dispute avoidance and resolution, and training programs. Raffaele is a frequent speaker at international conferences and lecturer of numerous courses all over the world, as well as author of many publications. He regularly cooperates with professionals in advisory, the business community, governments and international organizations such as the OECD, the United Nations, the World Bank Group, the International Monetary Fund, and the European Commission. Amongst others, he is an editor of Linde Transfer Pricing International Journal and a member of the International Fiscal Association (IFA), of the International Bar Association (IBA), and of Transfer Pricing Economists for Development (TPED). Raffaele holds a PhD in International Business Taxation from WU, an LLM in International Tax Law from WU, and an MSc in Business Administration and Law from Bocconi University. Raffaele contributed to Chapters 1, 2, 11, and 12 of this volume.

Dr Giammarco Cottani is an international tax and transfer pricing expert. Previously, Giammarco worked as the head of tax at Agoda where he led the tax function of the group and also as the director of global tax policy at Netflix where he spearheaded the tax public policy-related issues that the group faced in the countries in which Netflix operates. Before that, Giammarco was a partner of the international tax law firm of Ludovici Piccone & Partners where he coordinated the international and transfer pricing practice. Giammarco was also involved in several projects for the tax administrations in several LATAM/developing countries and served as a member of the UN Sub-Committee Group in charge of the Draft of the Practical Manual on Transfer Pricing for Developing Countries. He was an adviser to the Italian tax authorities on international tax and transfer pricing issues from 2011 to July 2015 and was one of the delegates for Italy on the OECD BEPS Project. He has (co-)led over twenty events in transfer pricing when working as a transfer pricing adviser in the transfer pricing unit of the OECD. Giammarco received his degree in law from LUISS Rome University in 2003, an LLM in European and International Taxation from the European Tax College in 2005, and a PhD in Corporate Taxation from LUISS University in 2009. Giammarco contributed to Chapters 1 and 13 of this volume.

Prof. Dr DDr h.c. Michael Lang is the head of the Institute for Austrian and International Tax Law of WU (Vienna University of Economics and Business) and academic director of both the LLM Program in International Tax Law and the Doctoral Program in International Business Taxation (DIBT) of this university. He is president of the Austrian Branch of the International Fiscal Association (IFA). He has been a visiting professor at Georgetown University, New York University, Sorbonne, Bocconi, Peking University (PKU), University of New South Wales (Sydney), and other universities.