26.08.2024
Ambit

The "Volkswagen" precedent: What's behind the Supreme Court's ruling on transfer pricing?

Academic/Unit: Juan Marcos Rougès.

The Supreme Court has issued a ruling in a case involving Volkswagen Argentina SA (VWA) that contains important guidelines regarding transfer pricing regulations . These regulations aim to ensure that, for income tax purposes, international transactions between related companies are adjusted to market conditions, prices, and margins. To this end, the ruling establishes a series of methods that, based on price or margin comparisons with other companies or transactions considered comparable, allow for verification of such adjustments.

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