Transfer price consists of one of the most challenging corporate activities to assess. Determining the correct price for products and services can be a very arduous task, as there are tax implications amidst this type of financial operation.
Luckily, there is an elect group with years of trajectory behind willing to take on those situations that no other accounting firm dares to. We are WAYFINDERS Consulting. We are the firm that scrutinizes all of the needed elements so that your transfer prices no longer pose major inconveniences in your transactions.
What Is Transfer Price?
Transfer price is the price that is utilized by related companies to sell each other products or services.
Related companies are those that are somehow connected by a commercial relationship between them. This is usually achieved by one large holding having some form of control of the capital, management, or control of both companies, making them related to each other by belonging to the same group.
However, these relationships do not necessarily imply that companies have to sell their goods at lowered prices. Au contraire, they are meant to establish relationships as if they were independent parties. This is called the “arm’s length principle.”
The major inconvenience with this form of economic operation is that both parties may have different tax rates when selling—or reselling—the product or service. So, given that the rates are different, you can obtain a significant tax reduction by setting the correct transfer price in accordance with different preponderant variables.
Since this process can be very intricate, it is commended to look for professional help. Our team of chartered accountants holds vast experience in transfer price assessment, so when you choose WAYFINDERS Consulting, your transfer price assessment becomes unparalleled.
Transfer Pricing Common Setbacks
- Knowing the accurate price of high-value transactions, both products and services
- Inter-company financing
- Service transactions between departments
- Limitation of deductibility costs
- Possibilities of double taxation
These are some of the most common problems that may befall from improper transfer pricing assessment. These scenarios also entail diverse adverse situations for your company, such as tax disputes.
You can avoid all of this by hiring us. WAYFINDERS Consulting meticulously looks after each stage of the transfer pricing assessment so that you can avoid its common mishaps.
Situations that Demand Transfer Price Assessment
- You may want to double-check if company transactions are done complying with the arm’s length principle
- You may want to optimize your opportunities as a company owner
- You may need a better way of handling transfer price documentation
- You may need support and counseling in regard to dealing with tax authorities like the HMRC
The Solutions We Grant
- Function analysis
- Risk assumption and asset utilization analysis
- Adequate transfer pricing methodology selection
- Internal and external comparables assessment
- Revision of transfer price required documentation
- Tax audit support
- Counseling