Baku hosted conference on Transfer Pricing: Implementation and International Practice

Baku. 27 September. REPORT.AZ/ The Conference on “Transfer Pricing: Implementation and International Practice” organized jointly by American Chamber of Commerce in Azerbaijan (AmCham) and Big 4 companies (Deloitte Azerbaijan, EY Azerbaijan, KPMG Azerbaijan and PwC Azerbaijan) took place in Baku.

Report was informed in the AmCham. 

In 2017, transfer pricing rules were introduced to the Tax Code in Azerbaijan and have come into effect since February 2017. The ultimate goal of the conference was to support implementation and better understanding of the international practice on transfer pricing.

Mr. Nuran Kerimov, President of American Chamber of Commerce in Azerbaijan welcomed the participants, emphasized the importance of this event and gave the floor to Mr. Zaur Fatizada, General Director of the Department for International Cooperation and Tax Monitoring in Financial Institutions of the Ministry of Taxes of the Republic of Azerbaijan. Mr. Fatizada thanked AmCham for organizing such an important event and shared the position of the Ministry of Taxes on the prospective implementation of transfer pricing in Azerbaijan.

The first presentation was delivered by Mr. Alexey Sobchuk, Tax Director in Deloitte Russia on “TP evolution in Russia, Russian first TP audit experience and common mistakes of taxpayers at initial stages of TP implementation“ and Ms. Narmin Aslanova, Senior Manager in Deloitte Azerbaijan “Practical difficulties of Transfer Pricing analysis in developing countries”.

Then Mr.Igor Chufarov, Transfer Pricing Partner in EY Ukraine informed participants on the issues of “Information on comparable transactions for TP purposes”. After that Mr.Ulvi Yusifov, Senior Manager in EY Azerbaijan made a speech on “Search of comparable transactions information for various types of transactions under Azerbaijani Transfer Pricing Regulations (in cases)”.

Later, a key-note speaker Mr. Nikolai Mishin, Head of the Transfer Pricing Unit of the Audit Department of the State Fiscal Service of Ukraine delivered a presentation on history, adoption and implementation of TP rules in Ukraine. Additionally, Mr.Mishin emphasized the importance and necessities of cooperation between the Ministry of Taxes and private sector representatives.

Subsequently, Mr. Jens Karreman, TP Partner in KPMG Netherlands commenced with the presentation on “TP documentation in the Netherlands, 15 years of development. Suggestions for Azerbaijan”, also Mr. Maurits Stuyt from KPMG Netherlands informed the participants about “Advance Pricing Agreements - TP interaction between taxpayers and authorities”

The last presentations were presented by Mr. Anuar Mukhanov, Transfer Pricing Leader in Eurasia, PwC Kazakhstan “Transfer pricing developments across Eurasia” and Mr.Rashad Abbasov, Transfer Pricing Manager in PwC Azerbaijan on “How Azerbaijani transfer pricing regulations can affect businesses”.