Czech Republic: Increased Scrutiny of Transfer Pricing

The Specialized Tax Office (‘STO’) in the Czech Republic has undertaken an operation to scrutinize multinationals' related-party transactions to ensure they are on arm's length principles.  The operation began in January and is still continuing

The review is restricted to those Czech companies with an annual turnover exceeding CZK2bn (approximately USD81,700,000) and also banks, insurance companies, and other financial institutions, with particular taxpayers being selected for review based on data received from questionnaires voluntarily completed by taxpayers last year and data obtained from the STO's own investigations.