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

March 22, 2019
The advent of better technologies has created a huge opportunity for critical access hospitals to access information that can help them make informed decisions and improve efficiency.
March 21, 2019
Arizona has filed a lawsuit against California over its “doing business” tax. 
March 21, 2019
Firm News
The union adds a new office and state to the regional CPA firm and adds additional ERP talent to their growing NetSuite practice.
March 20, 2019
If your answer to this question is yes – or you are considering doing business internationally – you probably know there are many fine details that need your attention. Some questions to ask yourself: Do you have related parties in different…
March 20, 2019
Ready to think about what life is like post-business? If a transition is on the horizon, we offer seven steps to help you create a successful succession plan.
March 20, 2019
The decision to transition your business is a big one, but there are a few questions you can ask to determine if you’re ready.