Insights: Article

Transfer Pricing Details

By Jason Fritts

November 30, 2016

What is Transfer Pricing?
Transfer pricing refers to the profit allocation method used to attribute a multinational corporation's net profit (or loss) on tangibles, intangibles and services before tax to those countries where it transacts business. Companies set transfer prices among divisions that are under their control or are related to their enterprise.

There are tax regulations that companies must comply with when they set their transfer pricing. Eide Bailly consults with businesses to minimize transfer pricing compliance risk by providing planning, policy guidance and benchmarking services.

How does it work?
We collaborate with transfer pricing peers in HLB International firms around the world to proactively address tax efficient transfer pricing policies. As a result, multinational companies may reduce their compliance risk while minimizing the consolidated entity’s net effective global tax burden.

What are the benefits?
Companies that utilize transfer pricing experience reduced compliance risk and a potentially reduced global tax rate. Through benchmarking and documentation services, transfer pricing compliance helps companies minimize their risk. Proactive transfer pricing policies can also reduce a multinational entity’s net effective global tax rate and maximize returns to group stakeholders.

How can Eide Bailly help?
We help clients with transfer pricing through planning, benchmarking, documentation, training and IRS defense. As a member of HLB International, we have access to qualified peers in firms around the world, which allows our clients to access local resources to address their transfer pricing concerns.

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