Transfer Pricing is one of the most challenging tax issues that multinationals across the world face today, as international regulations now require stricter compliances and detailed information about pricing intercompany transactions.
Transfer Pricing Regulations across the globe demand that every transaction between a related party is at arm’s length.
The “arm’s-length principle” of Transfer Pricing states that the amount charged by one related party to another for a given product must be the same as if the parties were not related.
Transfer Pricing provisions come into play under the following circumstances:
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