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.

Latest Insights

November 15, 2018
Article
Until recently, many businesses weren’t overly concerned about sales tax. They knew they needed to collect and remit in the state in which they resided, but beyond that, their compliance burden was limited.
November 12, 2018
Article
This insight explores what dealerships can expect from the proposed section 199A regulations under tax reform.
November 8, 2018
Article
Are you a business taxpayer with annual gross receipts of $25 Million or less? If so, you may be eligible to take advantage of new Small Taxpayer Safe Harbors that could generate significant tax savings and simplify your tax returns in future years!
November 8, 2018
Article
Considered the most significant tax code overhaul in over three decades, the Tax Cuts and Jobs Act passed in 2017 includes provisions affecting both individuals and businesses.
November 7, 2018
Recorded Webinar
State and local sales tax compliance is always evolving, making it important to stay up-to-date on changes affecting your tax liability and responsibilities. This session will cover what you need to know regarding the recently enacted state and…
November 7, 2018
Article
“Why is my portfolio underperforming the market?” This question may be on your mind.
November 5, 2018
Article
Identify your implementation methodology. There are four practical expedients available. We'll explore each option.
November 5, 2018
Article
Deeper dive into ASU 2016 liquidity.
November 5, 2018
Article
There are many forms individuals and businesses need to consider as they work to comply with the ACA. Receiving and completing the appropriate form at the right time is key.