Difference between revisions of "Transfer Pricing"
m (The LinkTitles extension automatically added links to existing pages (https://github.com/bovender/LinkTitles).) |
|||
| Line 1: | Line 1: | ||
| − | 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> | + | 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 18:57, 6 February 2021
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