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Transfer Pricing Monitor

We present to your attention a demo version of the innovative transfer pricing software

Automated reporting for monitoring transactions

The Rules for Monitoring Transactions, approved by Order of the Minister of Finance of the Republic of Kazakhstan dated December 15, 2017 provide for annual reporting on Monitoring of transactions to tax authorities.

The use of digital technologies in this area of activities will allow:

increasing labor productivity by reducing personnel labor costs: there will be no need to manually enter data for each delivery in the reporting;
simplifying the procedure for completion of reporting forms;
establishing an effective exchange of information between the systems implemented by the taxpayer and tax authorities;
making a forecast for market prices in future periods;
providing quick access to information, as well as data protection for operations performed.

It should be noted that over 300 large companies in Kazakhstan in all business areas (oil and gas, mining, banking, agricultural, tobacco, pharmaceutical, energy, etc.) are subject to transaction monitoring.

In this regard, the use of this IT software for monitoring transactions will cover all of the said sectors of the economy.

Automated market price calculation

Taxpayers and the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan have a need to apply a unified system for calculating the market price using the comparable uncontrolled price method based on the approved Pricing Methodologies.

This method is a priority in determining the market price, and, at present, the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan applies the appropriate Pricing Methodologies for such commodities as cotton, uranium, titanium sponge, oil and gas condensate, steel, etc. The availability of these Methodologies allows ensuring transparency and clarity in the implementation of control functions by tax authorities, and enables taxpayers to calculate risks in advance before a tax audit.

The software is based on the use of data from officially recognized sources of information on market prices (e.g. Thomson Reuters, Platts, Argus) and taxpayer data provided in the transaction monitoring reports. If the result of the selling price calculation is included in the price range, this price will be recognized as an acceptable market price; in case of deviation from the range, the tax authority will adjust the taxation items and implement additional charges.

In addition, the software contains the entire regulatory legal framework for transfer pricing, as well as a system for exchanging information between the taxpayer and the State Revenue Committee of the Republic of Kazakhstan in the form of electronic messages.

In connection with the above, Olympex Advisers invites taxpayers of the Republic of Kazakhstan to introduce the innovative software for analyzing information from foreign economic transactions on transfer pricing to verify the correctness of the calculation of the market price of the taxpayer.