Transfer Pricing Strategies
Does your company have international operations or are you contemplating expansion of your operations internationally? If the answer is yes, you should consider creating a transfer pricing strategy.
What is transfer pricing?
Transfer pricing is a pricing arrangement for a transaction between related legal entities within a multinational enterprise. Intercompany transactions may include the transfer of tangible goods, services, intangibles and loans. The intercompany transfer price must be set as though the entities were operating at arm’s length (i.e., as if the entities were independent companies and not related).
According to the OECD, approximately 60% of world trade takes place within multinational enterprises. As a result of this large amount of multinational trade, tax authorities around the world have become more assertive in enforcing transfer pricing regulations and initiating harsher penalties and new documentation requirements. The IRS has initiated a plan to add 2,000 staff to expand international audit coverage. In the United States, non-compliance may result in a penalty ranging from 20% to 40% of the underpayment of tax.
BlumShapiro’s Transfer Pricing Services
BlumShapiro develops custom tailored solutions to help unlock the full potential of your organization. We develop a deep understanding of each client’s business, and act as an independent and objective advisor.
Our world-class Litigation Services and Business Valuation Group understands the level of precision and care required for cases that may be reviewed by the tax authorities and courts.
Our experts can develop a tax planning strategy that can help minimize your exposure to transfer pricing adjustments and tax penalties.
Some of our transfer pricing services include:
- U.S. and non-U.S. transfer pricing documentation studies
- Transfer pricing planning and strategy
- Audit support
- Advance Pricing Agreement
- Business valuation for intercompany transfer of assets
- Litigation support
- Strategic planning
Working proactively with one of our experts can assist your company in developing a strategy to avoid non-compliance penalties, costly transfer pricing audits and double-taxation.
Contact Andrew Bostian today to learn more about our Transfer Pricing Services.
State up-to-date with the latest developments regarding transfer pricing:
- Managing Transfer Pricing After BEPS
- Does an Intercompany Asset Transfer Require a Sales Transaction?
- OECD Provides Guidance on Transfer Pricing Documentation
- Transfer Pricing - It’s No Longer Just for Multinational Companies
- IRS Releases Revenue Procedure 2015-41 - Updated Procedures for Advance Pricing Agreements
- Is Your Company Prepared For Increased Transfer Pricing Scrutiny?
- IRS Releases Temporary Regulations to Coordinate Arm’s Length Standard and Best Method Rule for Transfer Pricing
Top 5 Things to Think About Regarding Your Transfer Pricing
Contact our Transfer Pricing Team for more information: