For those of you who are involved in the management of a multinational entity, you are most likely aware of the complex tax and legal obstacles and rules that you have to navigate in order to keep the entity running smoothly.
One of the most important challenges relates to transfer pricing - the amount charged for goods, services, capital, intangible property and/or risks transferred between related parties. If there is any common ownership between your business and another business that operates internationally, transfer pricing rules will dictate how to value those goods and services.
Common types of transactions/transfers include:
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