Transfer Price Assessment Service Page

Transfer price is the price that is utilized by related companies to sell each other products or services.

Related companies are those that are somehow connected by a commercial relationship between them. This is usually achieved by one large holding having some form of control of the capital, management, or control of both companies, making them related to each other by belonging to the same group.

However, these relationships do not necessarily imply that companies have to sell their goods at lowered prices. Au contraire, they are meant to establish relationships as if they were independent parties. This is called the “arm’s length principle.”

The major inconvenience with this form of economic operation is that both parties may have different tax rates when selling—or reselling—the product or service. So, given that the rates are different, you can obtain a significant tax reduction by setting the correct transfer price in accordance with different preponderant variables.

Since this process can be very intricate, it is commended to look for professional help. Our team of chartered accountants holds vast experience in transfer price assessment, so when you choose Vision Consulting, your transfer price assessment becomes unparalleled.