Taxes

We are committed to complying with the tax laws in any country where we operate

Roche operates around the globe and it is our obligation to comply with the tax requirements in any country where we operate. This includes tax obligations for all kind of taxes: in the case of Roche mainly income taxes and sales or value-added taxes.

Income taxes are payable based on taxable income. The taxable income of a group company depends substantially on transfer prices for goods and services bought from or sold to other group companies. Tax authorities may claim higher taxable income by asking for lower transfer prices on purchases and/or higher transfer prices on sales. As a consequence, higher taxable income may result for one party involved in the transaction. If the tax authority of the other country involved in the transaction does not adjust income correspondingly, income adjustments of the first country lead to double taxation for Roche.

In order to avoid or at least reduce the probability of double taxation, Roche companies apply the “OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations” for cross-border transactions of goods and services. This includes the application of the correct transfer pricing method based on the analysis of the functions performed and risks assumed as well as appropriate documentation.

In particular cases Roche and the respective tax authority may disagree on the correct application of local tax law and the OECD transfer pricing guidelines. Furthermore, the national tax authority of one country could have a different opinion from a national tax authority of another country with regard to transfer prices applied. In some cases there may even be inconsistencies between national authorities within the same country as e.g. customs and tax laws are not always aligned and consistent. However, Roche is committed to complying with tax laws. In the event of disputes, it contributes with the respective authorities in a positive spirit to find balanced solutions in accordance with the applicable laws.

We are all expected to:
  • Comply with the tax laws in the countries where we operate.
  • Apply transfer pricing in accordance with OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
  • Contribute actively and positively to solutions in the event of conflicts with local tax authorities or between national authorities.
Questions & Answers

I have different options for a planned product flow and the respective pricing. I am not sure about the tax consequences of the different options (e.g. with regard to income tax and other tax such as value-added tax). What should I do?

Contact the local person responsible for tax or your contact person in Group Tax for coordination between the different countries involved.

I doubt that the actual or foreseen terms and conditions in an intercompany contract meet arm’s length standards as per OECD transfer pricing guidelines or local law.

Involve your contact person in Group Tax for further discussion.

What do I do if tax authorities question transfer prices on cross-border transactions?

Contact the responsible person in Group Tax to analyse the situation further and take appropriate action to comply with local laws and OECD transfer pricing guidelines, and in order to avoid double taxation.

Further Informations