Transfer pricing comes across as strategic risk mitigation and management tool for most businesses. Global objectives and operations often require a liability distribution, which eventually validates the importance of a transfer pricing plan. While every company has a specific intercompany pricing module, the evolution of stricter enforcement practices from the concerned authorities is now making organizations opt for third party services for getting the documentation right.
Companies that make use of credible and compliant transfer pricing techniques are better equipped when it comes to lowering shipping costs. With different segments of the same company exchanging services and products, transfer pricing helps reduce the tariff rates, even if they concern movement across international waters.
Easier said than done, to initiate transfer pricing in a holistic and rewarding manner, companies require efficient services, best used for preparing documents and disclosures. Moreover, with companies operating across diverse countries, country-to-country financial reporting is also an essential aspect that companies must concentrate on.
