Azerbaijan’s Ministry of Taxes purchases Thomson Reuters tax solutions
Among the products purchased by the Ministry are: Onesource Benchmark and Onesource TP Loan Module.
Thomson Reuters and Ministry of Taxes of the Republic of Azerbaijan have signed an agreement under which the Ministry will use Thomson Reuters tax solutions aimed at implementing tax control in the sphere of transfer pricing.
Thomson Reuters, the world’s leading provider of intelligent information for businesses and professionals, and Ministry of Taxes of the Republic of Azerbaijan have signed an agreement under which the Ministry will use a range of Thomson Reuters solutions aimed at enhancing tax control in transfer pricing in compliance with tax legislation of the Republic of Azerbaijan.
In 2016, Azerbaijan introduced new rules for implementing tax control in Transfer Pricing in the country’s tax legislation. New legislation applies to transactions of more than 500,000 manats throughout the year, closed after January 1, 2017. These tax control rules are aimed at counteracting the erosion of the taxable base in the context of globalization of large companies and withdrawal of capital outflow.
Among the products purchased by the Ministry are: Onesource Benchmark and Onesource TP Loan Module – these solutions allow to analyze financial markets and companies’ profitability; Checkpoint World, a solution that helps to analyze international tax legislation and reveal harmful tax practices; and Thomson Reuters Eikon, Thomson Reuters flagship terminal that will assist the Ministry in receiving the most reliable information on commodity and capital markets transactions.
Thomson Reuters products will help analyze accounting and statistical reports data of private and public companies from 110 countries, as well as lending markets of 174 countries. For example, Thomson Reuters solutions will allow to search for comparable transactions in order to determine the market interval of interest rates on loans, bank deposits, as well as guarantees and letters of credit.
Thomson Reuters tax solutions are widely used for tax administration processes in transfer pricing by tax authorities as well as the largest corporations, consultancies and banks around the world (USA, Great Britain, Netherlands, Turkey, Russia, Kazakhstan, etc.). They help determine commodity market prices, levels of market compensation for loans and financial instruments, companies’ market profitability indices as well as tax structuring of cross-border transactions.
“Over the last several years, the role of transfer pricing has significantly increased in legal systems in all CIS countries. New legislation is definitely a positive step towards creating an infrastructure for a transparent taxation system and revitalizing business and financial markets in Azerbaijan. We are glad to offer our partners the solutions aimed at providing the most reliable information on commodity transactions and capital markets and ensuring compliance with the international legislation,” said Piotr Marczewski, Managing Director of Thomson Reuters in Russia and CIS.
The Ministry representative: “We have conducted a thorough analysis of offers made by various suppliers, but ultimately chose Thomson Reuters solutions. With help of these solutions, the Ministry will be able to build a rigorous risk analysis system and ensure tax compliance related to transfer pricing. Other advantages to Thomson Reuters solutions include on-time delivery of information on a wide range of commodity markets benchmarks and analysis of reporting on domestic financial transactions. Using these solutions will help us bring tax principles to accordance with international standards, facilitate lawful establishment of transfer prices and increase effectiveness of tax control.”
