Transfer Pricing Services
Are you up-to-date on your transfer pricing strategies?
Whether you are starting new entities or your multinational company is thriving, mature transfer pricing should be on your to-do list.
With the heightened scrutiny from tax authorities, are you confident that you’re handling your intercompany pricing fairly and consistently?
Kaufman Rossin’s international tax experts provide transnational organizations with customized analyses. We can help you find opportunities to reduce your worldwide effective tax rate, satisfy documentation requirements, or resolve tax controversies.
A transfer pricing analysis can prevent tax surprises down the road.
What is the importance of transfer pricing?
Transfer pricing, the price determined for transactions between related entities, focuses on cross-border transactions, such as transferring goods, services, intangible assets and intercompany loans.
The process involves the setting of “arm’s length” pricing—which means prices comparable to prices that would be charged between two independent companies.
Tax authorities increasingly scrutinize transfer pricing to prevent companies from underpaying tax in countries by shifting profits to lower tax jurisdictions, thus increasing the risk of tax controversy. These audits are costly and time intensive, with potentially steep penalties.
A transfer pricing analysis does not remove the risk of an audit, but it provides support for the positions taken, reducing the imposition of penalties.
Transfer pricing studies help businesses manage profitability, increase efficiency and comply with federal tax requirements.
Our practice offers a range of options like benchmarking studies or economist/expert reports tailored to your industry and business practices.
Plan for the future
A transfer pricing analysis provides accurate pricing data and evaluates your company against similar businesses around the globe, to help you plan for success.
Effectively allocate losses
Data from your analysis can help you effectively allocate losses by restructuring or shifting functions, income or expenses.
Structure intercompany loans and royalty streams
Transfer pricing analysis can help establish your credit rating and determine the appropriate interest rate or royalties for intangible property transfers between the organizational units.
Establish reasonable cause and good faith to resolve tax controversies
Transfer pricing studies can establish reasonable cause and increase the possibility for penalty relief.
Transfer pricing penalties can increase your tax liability up to 40%
Our transfer price process produces precise results.
Phase 1: Benchmarking
The benchmark analysis is used to set and test your transfer pricing policy. Our international tax team experts will research similar companies, identify an arm’s length range of prices and operating profits, and test the appropriateness of your transfer pricing policy.
Phase 2: Economic/expert reports
These reports can provide additional support for the conclusions in the transfer pricing study and/or for more complicated transactions, such as profit splits and unspecified methods.
Questions about transfer pricing?
Kaufman Rossin’s international tax professionals can help you fulfill compliance requirements while leveraging the full tax planning benefits.
As members of Praxity, we’re also able to tap into an international network of firms with local country expertise on transfer pricing policies and challenges.