Transfer Pricing in the Information Technology (IT) Sector
Transfer Pricing in the Information Technology (IT) Sector
Description
We conducted a transfer pricing optimization project for a company in the information technology sector with a global presence and a complex business model. The company wanted to improve the efficiency of its transfer pricing, ensure consistency in the application of transfer pricing, and reduce tax risks.
Solution
Our team of transfer pricing experts performed a thorough analysis of the company’s existing transfer pricing, identified weaknesses, and recommended an optimized approach. We used the TP Catalyst database to compare the company’s transfer pricing with competitors and industry standards. We also provided guidelines for applying cost allocation methods and improving transfer pricing documentation.
Results
Implementing our recommendations resulted in improved efficiency of the company’s transfer pricing, consistent application of transfer pricing, and reduced tax risks. The company achieved greater transparency in managing transfer pricing, which resulted in increased trust from clients and partners.
