Transfer pricing, or the pricing of transactions between affiliates in different tax jurisdictions—also known as intercompany pricing—presents both tax opportunities and financial reporting risks for multinational businesses. Tax authorities place a heightened focus on transfer pricing to increase revenue, leading to a rise in transfer pricing audits and penalties imposed. Proactively enacting transfer pricing procedures while working toward compliance can help your business avoid costly audits and lower your worldwide effective tax rate—so you can stay focused on its international growth.
