Transfer Pricing Studies
We perform transfer pricing studies according to IRC section 482 and the OECD standards. Transfer prices are the prices at which services, tangible property and intangible property are traded across international borders between related parties. Transfer pricing is important because a change in the transfer price would affect the profits of the business subject to tax.
Transfer pricing covers the tax levied on inter-company transactions (i.e. affiliated companies). A primary goal of the related regulations is to make certain that such transactions are handled as if there were no company affiliation. A concept called arm’s length transaction. Meeting transfer-pricing requirements can be extremely complex in today’s global economic environment.
We have experience performing the following:
- Determine arm’s length royalty rate
- Determine arm’s length licencing fee
- Determine arm’s length transfer of intangible property
- Determine arm’s length service agreement
- Determine arm’s length consignment fee
- Determine arm’s length management fee