Transfer Pricing

International Transfer Pricing
The laws and regulations of many countries clearly stipulate that transfer
pricing shall follow the Arm's Length Principle, that is, transfer pricing
shall refer to all parties of the transaction that are not related to each
other, and business transaction pricing shall be carried out in accordance with
fair transaction price and business practice.

If the transfer price is very different from the prevailing market price, and
the proportion is not proportional to the company's business, it may cause the
local tax authorities to picket. Through the principle of the independent
transaction, tax regulatory agencies can calculate the amount of tax that
enterprises should pay under the normal market price, and pursue and find the
part that enterprises do not pay enough.

Some multinational enterprises make use of global transfer pricing consultant
to achieve tax savings, which eventually arouse the suspicion and investigation
of the tax bureau, and pay a heavy price.

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