Transfer pricing is an accounting practice that refers to the setting of prices of goods and services that are exchanged among the subsidiary, affiliate or commonly controlled companies or legal entities that are part of the same larger enterprise. Transfer pricing helps in reducing duty costs by shipping goods into countries with high tariff rates at minimal transfer prices so that the duty base of such transactions is fairly low.
Nexia Audit Advice Transfer pricing services include:
- Transfer pricing planning;
- Identification of transfer pricing risks;
- Assessment of the existing transfer pricing system;
- Assessment of the existing transfer pricing policies;
- Development of transfer pricing policies and systems;
- Implementation of transfer pricing policies and systems;
- Preparation of transfer pricing documentation;
- Intercompany pricing analysis;
- Pricing and cost analysis to minimize foreign taxes;
- Consultations on transfer pricing issues.