What is transfer pricing?
Transfer pricing is the requirement to apply arm’s length terms to transactions between group companies, this being determined based on comparable transactions between independent companies.
Transfer pricing solutions for your business
Are you a UK group company that engages in transactions with other members of the group?
Although UK transfer pricing is only generally mandatory for groups or companies with more than 250 employees, it can still be good commercial practice to ensure that intra-group services provided are charged for at commercial rates and the transfer pricing obligations for many other countries, such as the US, do not provide an exemption on account of size. Following the OECD’s introduction of the BEPS project - Base Erosion and Profit Shifting – to ensure groups do not artificially shift profits to low-tax jurisdictions it’s crucial you get the right advice in relation to transfer pricing.
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