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 mounting fast.
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. RSM firms have conducted more than 150 transfer pricing projects for clients worldwide across a full range of business sectors and industries. To assist, 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
- Support documentation