Transfer pricing refers to the pricing arrangements set by international related entities in respect of transactions between them such as the sale of goods, provision of services or the transfer of intellectual property. It has become one of the most important international tax issues facing multinational corporations, whatever their size.
Globally, transfer pricing has captured the attention of tax authorities keen to ensure their fair share of global tax revenues. Back in 1994, just two countries enforced formal transfer pricing rules. Today, it’s over forty. For international companies the risk of being challenged on their transfer pricing practices is increasing rapidly.
The OECD’s continuing discussions with member Countries' governments regarding transfer pricing means multinational businesses are more exposed to IRD risk review than ever before. Organisations failing to fulfil the required standards risk incurring high financial costs in terms of additional taxes, interest and penalties levied by the tax authorities. The only way to reduce this risk is by having robust transfer policies covered by a comprehensive transfer pricing document.
To assist with managing the complexities of cross border transactions and pricing, we have developed a ‘4-step’ transfer pricing review process that delivers three vital benefits to clients: peace of mind, proof of compliance and an assessment of strategic potential.
The results of our ‘4-step’ review will provide you with:
Minimised risk of double taxation
Reduction of the worldwide effective tax rate
Enhanced shareholder value
RSM New Zealand are uniquely placed to meet the needs of our cross border clients through access to our global network and through our adoption of the RSM International Tax Centre of Excellence approach. Through our global network, you will have access to the highest level of professional transfer pricing advice from across the world. We can assist in coordinating and tailoring comprehensive and coherent transfer pricing documentation at any level.