Transfer pricing expertise for global companies
Middle market companies are increasingly going global, and when global companies begin to transact business in multiple countries, each country has an interest in assuring that the companies properly report their income to that jurisdiction. Transfer pricing rules adopted by the U.S. and its trading partners require transactions between related parties to be priced using an arm’s length standard. Related parties include parent companies and subsidiaries or brother-sister company relationships where two companies share a common parent.
Understanding complex transfer pricing requirements
Transfer pricing has recently become a significant focus of the Internal Revenue Service and taxing authorities around the globe. The rules on correctly setting, and then defending, intercompany pricing are complex, and many countries, including the U.S., require that detailed documentation be maintained to demonstrate how transfer prices were set and to show that such prices are reasonable and at arm’s length. Companies can assume that transfer pricing rules are in operation and being enforced in virtually every country in which they do business.
Our transfer pricing specialists will help you understand transfer pricing requirements, design global transfer pricing policies, complete required documentation, and assist in developing a worldwide strategy that minimizes double taxation and reduces the worldwide effective tax rate.
We will help you answer and understand the difficult questions. Our professionals can:
- Design a subject company’s intercompany pricing policies and architecture
- Perform a transfer pricing study to prepare documentation meeting IRS and foreign requirements
- Minimize your risk of double taxation and reduce your worldwide effective tax rate
- Align your transfer pricing policies with your evolving global supply chain