Articles by Royalty Range

A Transfer Pricing audit ensures that multinational enterprises (MNEs) follow the arm’s length principle when transacting with related entities across borders. During a Transfer Pricing audit, tax authorities examine the methods used by the company to ensure compliance with local and international regulations, such as the OECD Guidelines and local tax laws.

Experts predict that the ongoing rise in inflation and interest rates is likely to continue, driven by a unique combination of geopolitical, macroeconomic, technological, and economic factors. As a result, many businesses are increasingly concerned about how these rising rates will affect their Transfer Pricing strategies and overall business models.

Transfer Pricing is the set of rules and methodologies applied to transactions between related entities within multinational enterprises (MNEs) ensuring that these intra-group transactions follow the arm’s length principle. In practice, one of the most challenging aspects of Transfer Pricing is the comparability of license agreements, which often involve intangible assets and can be highly complex.

In today’s fast-paced business environment, Intellectual Property (IP) is an important element of innovation, uniqueness, and competitive edge. Assets such as patents, trademarks, copyrights, and trade secrets are vital in driving the success and expansion of companies across various sectors. However, grasping the real worth of Intellectual Property goes beyond just recognizing creativity or innovation.

Distribution plays a crucial role in commerce, however, beyond the basic function of moving goods, distributors operate in diverse and distinct ways shaped by the specific products, markets, storage needs, security concerns, logistical challenges, and legal obligations involved in the transactions.

Global inflation adds complexity into Transfer Pricing by affecting cost structures, profit margins, comparability, and regulatory examination.

Recently the Organisation for Economic Co-operation and Development (OECD) has introduced a new approach to support the profits earned by distributors within the multinational enterprises.

An accurate Transfer Pricing benchmarking analysis is essential for ensuring that intercompany transactions are conducted at arm’s length and in compliance with international tax regulations. Below we have gathered the key factors that contribute to the reliability of such analysis.

We are delighted to announce that RoyaltyRange is an associate partner of the upcoming TP Minds Asia event at Hotel Swissotel, The Stamford, Singapore on 2 – 3 October 2024.

Size is one of the critical factors in Transfer Pricing comparable company searches as it ensures the accuracy and reliability of the arm’s length principle, which is the cornerstone of Transfer Pricing regulations.