What does a transfer pricing specialist do?

What does a transfer pricing specialist do?

The Value Of A Transfer Pricing Consultant. A transfer pricing consultant provides value for clients in three distinct ways: 1) ensuring compliance with transfer pricing guidelines, 2) providing guidance in planning and optimizing transfer pricing policies, and 3) assisting with dispute resolution.

How do you become a transfer pricing expert?

Key Requirements

1. You possess a degree in Finance, Law, Economics or similar area.
2. You have prior experience in a similar role.
3. You have proven advisory and compliance experience across direct tax, indirect tax, international tax and transfer pricing.
4. You have strong analytical skills and a high attention to detail.

What is a transfer pricing economist?

A different perspective We provide new evidence and supporting arguments based on a fresh economic perspective, complementing industry expertise and forensic accounting techniques. We advise OECD tax authorities and taxpayers across the world on transfer pricing issues, spanning a wide range of sectors including: FMCG.

Do I need a transfer pricing study?

When those related companies do business with each other, performing a transfer pricing study is a necessity. Transferring goods and services between companies under common control without a transfer pricing study puts you at risk with tax authorities.

Is transfer pricing a good career?

Transfer Pricing is an excellent career choice for CA Professionals as well as MBAs, Economists, even graduates — I’ll cover that where they may find more opportunities. It’s an excellent career choice because of various reasons why I say that.

What is transfer pricing KPMG?

KPMG’s Global Transfer Pricing Services helps companies implement economically supportable transfer prices, document policies & respond to challenge.

What is transfer pricing example?

Transfer Price = Outlay Cost + Opportunity Cost For example, consider a division that makes hats. The cost of making one hat is $2. That division can sell the hat in the marketplace for the market price of $5. Therefore, the opportunity cost of selling the hat internally instead of externally is $3.

Who regulates transfer pricing?

The Income Tax Act, 1961 through its Section 92-92F regulates the structure of Transfer Pricing and also deals with cross-border transactions; and are further applicable to double taxation avoidance treaties.

Is transfer pricing ethical?

If a company uses transfer pricing at a fair market value to simply pay lower taxes in another country, it is not violating any ethical standards or laws, he said. However, if companies arbitrarily lower the selling price of their goods to reduce their tax bill, they are guilty of tax evasion.

How do you avoid transfer pricing?

3 Tips for Avoiding Common Transfer Pricing Pitfalls

1. Create thorough documentation. Prepare annual transfer pricing documentation where appropriate, and prepare intercompany agreements to cover all material (especially recurring) intercompany transactions.
2. Regularly assess your policy.
3. Always be audit ready.

Why are transfer prices needed?

A transfer price is used to determine the cost to charge another division, subsidiary, or holding company for services rendered. Typically, transfer prices are reflective of the going market price for that good or service.

Is transfer pricing a growing field?

Advice on transfer pricing was the fastest-growing area of tax advice in 2018, growing 9.3 percent to $9.2 billion in 2018, and was projected to grow by 9 percent in 2019 to nearly $10 billion. Transfer pricing has remained a growing area of focus for tax authorities globally.