Difference between revisions of "Transfer Pricing"
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| − | + | Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided. Transfer pricing allows for the establishment of prices for the goods and services exchanged between a subsidiary, an affiliate, or commonly controlled companies that are part of the same larger enterprise. Transfer pricing can lead to tax savings for corporations—although tax authorities may contest their claims.<ref>Defining Transfer Pricing [https://www.investopedia.com/terms/t/transfer-pricing.asp Investopedia]</ref> | |
Revision as of 20:07, 13 August 2019
Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided. Transfer pricing allows for the establishment of prices for the goods and services exchanged between a subsidiary, an affiliate, or commonly controlled companies that are part of the same larger enterprise. Transfer pricing can lead to tax savings for corporations—although tax authorities may contest their claims.[1]
- ↑ Defining Transfer Pricing Investopedia