Small- and medium-sized businesses (SMBs) that perform cross-border, intercompany transactions—regardless of their size or industry—must adhere to transfer pricing rules. These companies may not understand whether transfer pricing applies to their business—let alone how to comply with the rules while meeting their business goals.
While transfer pricing is complex and the penalties can be steep, complying with the transfer pricing rules and retaining supporting documentation can offer your business significant benefits:
Limiting the chance of revaluations and penalties
Managing enterprise risk
Increasing operating cash flow and liquidity
Optimizing cross-border distributions
Mitigating the risk of double taxation
Improving supply-chain efficiency
Complying with the IRS and foreign country standards
