Transfer pricing rules compliance

KEY POINTS

• Tax authorities are taking more interest in transfer pricing activities.
• Companies of all sizes that operate internationally must be compliant with transfer pricing requirements.
• Inter-company transactions must be supported by up-to-date legal agreements.
• Policies must be reviewed regularly.

Transfer pricing is an area of tax that sets out an internationally agreed basis for profits within a group to be allocated between individual legal entities in each tax jurisdiction. This is based on the arm’s length principle: what the price would be for a...