Tipi Tips #2: Why is transfer pricing relevant?

A question you may ask yourself is: why is this vague area of transfer pricing relevant for me? In other words, why should you care?

As you can imagine, multinational companies buy and sell cross-border within their own group. Let’s use another example. Imagine a Dutch company that sells a product to its sister company in Germany. It sells this product at a discount ordinary clients would not get. Naturally, that is nice for the German company. It receives a cheap product and therefore makes more profit. But the Dutch company in turn makes less profit. In this way, you could ‘choose’ which of your companies makes a profit and which makes a loss. This could encourage tax planning and tax avoidance. The example above can cost the Netherlands millions in lost tax revenues when you apply it on a large scale. That is why tax authorities are interested in this topic, and why transfer pricing is relevant to companies as well.

Transfer pricing made easy

Tipi's mission is to explain the field of transfer pricing to you in a transparent and simple manner. We deliver on this mission with expertise, experience and our unique approach. We expose all transfer pricing concepts (and secrets) in our database. Here you can learn the basics of transfer pricing for your business, and get an idea of the work we do to help you navigate the transfer pricing field.

Our transfer pricing services can be divided into three phases in which we can help:

Advance advice

Practical and clear advice based on our three pillars

Build your tax image

Tax Transparency Report: improve your company's tax image


Clear and simple documentation afterwards

Let us inform you about the possibilities

Transfer pricing is the future of international taxation. Let us discuss how we can future-proof your business.

Vincent Maessen

Founder Tipi Consultancy