Ruce financial risks Al relationship ccording to. Gunadi Suandy transfer pricing is the determination of prices or rewards in connection. With the delivery of goods services or transfer of technology between companies that have a special relationship. Transfer pricing can also be interpret as a systematic price manipulation. Technique with the aim of artificially rucing profits making it appear as if the company is making a loss so that the company can avoid taxes. According to Lumbantoruan transfer pricing is determining the price of compensation for transactions between divisions.
Within a company or between
Companies within a group. According Russia Mobile Number List to Hongren and Sundem Suandy transfer pricing is an attempt by multinational companies to ruce income tax by allocating company profits to subsidiaries that have a lower tax burden. Also read Declining Balance Depreciation Definition Formula and Examples What are the Benefits of Transfer Pricing The benefits of transfer pricing can be seen from various perspectives such as companies government and society. The following are some of the benefits of transfer pricing for various parties Benefits for the company From the companys side transfer pricing can be us for various purposes such as.
Optimize global income
After tax by allocating profits Russia Telegram Number to companies that have a lower tax burden. Strive to secure competitive position by adjusting transfer prices according to market conditions. Evaluate the performance of foreign company branches using transfer prices as a measuring tool. by avoiding currency exchange rate fluctuations or government regulations. Help manage cash flow at company branches by determining the time and amount of payments between companies. Increase efficiency and synergy between companies and shareholders by using transfer pricing as a legal tool. Benefits for the government From the governments side transfer pricing.