International Tax and Transfer Pricing in Practice
INTRODUCTION
Today globalized markets, international foreign direct investment, and worldwide procurement combine to create a complex, integrated and dynamic business environment. Transfer prices are the value assigned to
intermediate goods, which move between the divisions of a vertically integrated firm. The transfer or movement of raw materials, parts, or partially finished goods may occur in the context of either national or international
production process. Intra-firm trade which includes services, technology, capital goods, intermediate goods, and finished goods for resale, constitutes a significant portion of world trade. In general, governments constrain transfer pricing decision choices through trade policy, foreign direct investment incentives, labor laws, foreign exchange rates, currency regulations, local
content requirements, traditional business practices and taxation. Taxation has remained an ever-green subject for business groups and continues to remain so.
Learning Objectives
- Explain how transfer pricing is legislated in local tax law and strategies
- Appreciate where mispricing and potential tax revenue leakage may occur
- Understand the tools and techniques undertaken by a tax administration to identify and mitigate against transfer pricing problems
Target Group
Participants with no or limited knowledge and experience with international transfer pricing, however it is also suitable for those that have previous experience with transfer pricing and wish to refresh or consolidate their understanding of the topic