Transfer Pricing

Transfer pricing is a term used to describe inter-company pricing arrangements relating to transactions between related business entities. These can include transfers of intellectual property, tangible goods, services, and loans or other financing transactions.

The use of transfer pricing tax strategies has recently attracted a high level of international attention, due in part to the rapid rise of multinational trade, the opening of several significant developing economies and transfer pricing’s increased impact on corporate income taxation. As multinational corporations evolve into true global enterprises compliance with the differing requirements of multiple overlapping tax jurisdictions has become a complicated and expensive task.

Multinational companies must contend with a new paradigm called “transfer pricing”, which become crucial in contemporary business world. We are observing a shift in the way companies handle transfer pricing issues, a shift which is driven by several key factors, some tax related, some cost-driven.

PricewaterhouseCoopers can help you:

  • Evaluate and manage transfer pricing risks
  • Develop proper international and local transfer pricing procedures and policies
  • Understand transfer pricing requirements and the approach of the tax authorities
  • Assist with transfer pricing audit procedures.

With the ever-increasing scrutiny of transfer pricing activity by tax authorities worldwide we can assist you in the development of tax-efficient structures that help increase compliance with legal requirements, prepare for rapid audit response, resolve transfer pricing disputes and decrease transfer pricing exposure in future periods