Transfer Pricing

Sets fair prices for transactions within a multinational group.

Stops companies from shifting profits to avoid taxes.

Makes sure prices match what unrelated companies would charge.

Helps avoid tax disputes or penalties.

Goods like raw materials or products moved between group companies.

Services like management or tech support shared within the group.

Intangibles like patents, trademarks, or licenses.

Mainly applies to cross-border deals between group companies in different countries.

Follows OECD guidelines and local tax laws.

Requires prices to match market rates (arm’s length principle).

Needs documentation to prove pricing is fair, like comparisons and business details.

Prevents tax authorities from changing prices and causing double taxation.

Lower Risk: Create pricing policies to avoid tax authority issues.

Compliance Help: Prepare documents to meet tax rules.

Pricing Plans: Build pricing methods that fit your business.

Audit Support: Help during tax audits to defend your pricing.

Global Alignment: Keep pricing consistent across countries to avoid problems.

Cuts the chance of tax penalties or extra taxes.

Makes pricing clear and defensible with solid documentation.

Saves time by matching pricing to your business needs.

Gives confidence in handling complex tax rules.

Pricing needs regular checks to stay up-to-date with market or rule changes.

Involves analyzing company roles, assets, and risks to set prices.

Rules differ by country, with unique requirements or profit margins.

Messing up can lead to audits, fines, or reputation damage.