What are the best methods for handling transfer pricing for intra-group services?
If you are a financial manager of a multinational corporation, you may have to deal with transfer pricing for intra-group services. Transfer pricing is the process of setting the prices for transactions between related entities within the same group, such as subsidiaries, affiliates, or parent companies. Intra-group services are the services that one entity provides to another within the same group, such as management, accounting, legal, or IT services. Transfer pricing for intra-group services can have significant implications for the group's tax liability, profitability, and compliance. Therefore, it is important to apply the best methods for handling transfer pricing for intra-group services. In this article, we will discuss some of these methods and their advantages and disadvantages.
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Muhammad Sohail, CAFractional CFO | Financial Controller | FP&A & M&A | Accounting, Finance, and Advanced Excel Expert
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Nikhil MehmwalInternational Tax Manager | Chartered Accountant
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Zaib U Nisa, ACAChartered Accountant | IFRS Specialist | QuickBooks Advisor | US Tax Preparer | Financial Modelling | SOP Designing &…