Bangkok, December 12, 2012 –
IFC, a member of the World Bank Group, and the Revenue Department of Thailand are holding a three-day conference from December 12-14 to help countries address transfer pricing risks to better secure tax revenues and provide certainty to investors, boosting countries’ prospects for economic growth.
Many governments in East Asia and the Pacific have introduced specific legislation on and improved administrative procedures for transfer pricing, which occurs when two related companies, such as a parent and a subsidiary, trade with each other in different tax jurisdictions. As economic opportunities increase in Asia, more enterprises are expanding beyond their traditional markets, increasing the need to consider international taxation issues and create a level-playing field for investors.
The conference, "Transfer pricing in East Asia and the Pacific - Protecting the tax base and building a strong investment climate,” will focus on policy challenges related to transfer pricing and identify solutions to improve tax administration.
“Over the past two decades transfer pricing has become one of the most important international tax issues faced by governments and multinational companies,” said Richard Stern, program manager of Global Tax Simplification, Foreign Investment Advisory Service, at the World Bank Group. “Setting clear and straightforward transfer pricing guidelines provides clarity to multinational companies as they set up operations across a number of countries and helps governments retain tax revenue.”
Tax administration and finance officials from Asian and Pacific countries, international transfer pricing experts, and representatives from the World Bank and the Organisation for Economic Co-operation and Development are among those who will attend the conference, which will be held with the support of the International Tax Dialogue in Bangkok, Thailand.
“Thailand, like many of its neighbors, has put transfer pricing policies and regulations in place to create an attractive investment climate,” said Satit Rungkasiri, director-general of the Revenue Department of Thailand. “More could be done around the region to establish efficient and fair tax administrations to make doing business clearer for international investors and encourage foreign trade.”
This event follows the first International Tax Dialogue regional conference held in Albania earlier this year. IFC is helping more than a dozen countries around the world to strengthen their transfer pricing policies.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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About International Tax Dialogue
The World Bank Group is a member of the International Tax Dialogue, which encourages and facilitates discussion and cooperation on international tax matters among national tax officials, regional tax organizations, and the leading international organizations. For more information, please visit
www.itdweb.org
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