As part of a series on the key areas of transfer pricing, the team at Alvarez & Marsal Tax UK talk about its importance for businesses that are in the midst of, or are considering, international expansion.
In our experience in working with businesses across a wide range of industries and stages of expansion, we have observed various situations that require strong knowledge and expertise in transfer pricing.
International expansion may take the form of moving into new countries by incorporating new entities,
acquiring existing businesses in new territories, or establishing physical presence overseas. Such expansion measures bring with them considerations that businesses must consider to ensure that the new transactions between related entities are priced in accordance with transfer pricing guidance/rules. A key objective of doing so, amongst others, is to manage the risk of double taxation.
Read more here.