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Transfer Pricing

Transfer pricing refers to the regulation of the price of services and goods according to market conditions, when there are special relationships between the two parties to an international transaction such as a transaction between a parent company in one country and a subsidiary company in another country. To deal with the possibility of setting a price that is not in accordance with market conditions, many countries have implemented transfer pricing regulations and require companies to provide documentation and justify the transaction prices set by them. Transfer pricing can be a complex issue, involving considerations such as the value of intellectual property, the location of manufacturing facilities, and the role of marketing and distribution. As a result, transfer pricing has become a critical issue for multinational corporations, tax authorities and international organizations such as the OECD.

Identification of parties related to the transaction

It is very important to identify related parties to transactions. Identification should include the parties and the responsibilities of each party in the production and sale process.

Transfer price and Benchmark Analysis

Analysis and pricing of transfer prices including what each related party wants in terms of production expenses, the risks each party bears, and the investment in property equipment and machinery.

Determining the pricing method

The most suitable pricing method to use must be determined, there are several pricing methods that can be used to determine arm’s length, the target price that is within the realm of reasonableness

Planning and implementing a transfer pricing strategy

We will help you implement the method and billing between the companies on an ongoing basis according to transfer pricing work.

Documenting the work of transfer prices according to the the tax authorities rules

We will document the research work in a detailed report that provides an explanation for the chosen method, and justifies all the assumptions made

ReExam transfer pricing work once a year

It is important to examine the assumptions that were taken into account when performing the work in order to examine whether the pricing we chose is still relevant

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