Transfer pricing is crucial for establishing fair and arm’s length prices between related parties, minimising the risk of tax disputes and double taxation.

Transfer pricing impacts international transactions by ensuring that transactions between entities in different countries align with market conditions and regulatory standards.

Transfer pricing guidelines are international and local regulations that provide a framework for determining fair transfer prices, preventing tax evasion and ensuring compliance.

The arm’s length principle ensures that the prices charged in related-party transactions are similar to what would be charged between unrelated parties in an open market.

Businesses can minimise transfer pricing risks by developing and implementing robust transfer pricing policies, adhering to guidelines, and engaging in proactive compliance measures.

APAs are agreements between taxpayers and tax authorities that establish transfer pricing methods for future transactions, providing certainty and reducing the risk of disputes.

Comprehensive transfer pricing documentation serves as the first line of defence when transfer pricing practices are challenged, providing evidence of compliance with regulations.

Economic analysis assesses the impact of transfer pricing on international transactions, ensuring that pricing reflects market conditions and is in compliance with regulatory standards.