Ayvens Croatia Ltd., Croatia

Background

Ayvens Croatia Ltd. (former ALD Automotive), a subsidiary of the Société Générale Group in Croatia, specializes in full-service-operating car leasing services. Operating in a complex multinational environment, the company faces stringent compliance requirements with transfer pricing regulations, particularly for financial transactions such as inter-company loans.

Challenge

The main challenge was to prepare comprehensive transfer pricing documentation for Ayvens financial transactions with related entities. These transactions required detailed benchmarking to ensure compliance with local and international tax laws, which vary significantly across jurisdictions. The company needed to manage and execute this task efficiently within a framework of regional and international cooperation.

Solution

To address this challenge, Ayvens enlisted Kreston Serbia’s and Kreston Croatia’s expertise. Kreston Serbia took charge of the technical aspects, including benchmarking the financial transactions to ensure they met arm’s length standards. This involved a detailed analysis of the terms and rates of loans between Ayvens and its related parties compared to market conditions and the use of appropriate benchmarking tools provided by Moody’s Analytics.

Simultaneously, Kreston Croatia managed the organisation, client management, and preparation of the final local transfer pricing documentation. Their role was crucial in coordinating efforts between the different branches and ensuring that all documentation met the specific requirements of Croatian tax authorities.

Results

The collaborative efforts of Kreston Serbia and Kreston Croatia resulted in robust transfer pricing documentation that fully complied with both local and international tax regulations. The project was not only a testament to effective regional cooperation, but also showcased the ability to serve international clients through a well-coordinated network.

Client Testimonial

Marela Barac, Finance Director at Ayvens Croatia Ltd., expressed her satisfaction with the services provided: “I am grateful for the assistance and dedication provided. It has been a pleasure working with you.

Conclusion

The successful preparation of transfer pricing documentation for Ayvens Croatia Ltd. demonstrates the effectiveness of Kreston’s network in leveraging regional expertise to meet the needs of international clients. This project not only ensured compliance with complex regulatory requirements but also set a precedent for future collaborations within the Kreston network.