Staying in Compliance with Transfer Pricing Regulations
You have taken your business to a new country and now want to transfer goods to one of your related entities. What seems like a simple business transaction could now be a big tax burden for your business. Because the potential exists to shift income to a lower tax jurisdiction, countries are seeking their “fair share” of tax revenues and have increased enforcement efforts. Compliance is based on whether the transfer pricing meets an “arm’s length” standard, which means pricing has to be set as if the two companies weren’t related.
Transactions subject to transfer pricing rules include transfers of tangible goods, intercompany services, transfers of intellectual property and financing transactions. By utilizing the rules to actively pursue tax savings rather than simply compliance, we are also able to reduce the odds that your transfer pricing be audited. Our solutions to transfer pricing include:
- Support of intercompany pricing by performing economic benchmarking
- Development of global transfer pricing policies
- Planning of cost sharing arrangements for the development of intellectual property
- Preparation of comprehensive transfer pricing documentation
Transfer Pricing Experience: Our tax professionals have experience with cross-border related-party transactions and transfer pricing documentation requirements. We will work with you and your documentation provider to ensure that your company has met documentation requirements globally. We’ll also assess strategic opportunities to determine a tax efficient global tax and cash flow structure.
Let us help you set transfer prices that comply with the numerous U.S. and foreign regulations. Contact us to learn how we can help you make smart decisions.