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Tipi Tips #4: Why is transfer pricing relevant for accountants?
Today’s topic is why transfer pricing is relevant for accountants.
You might think that transfer pricing is solely a tax concept, but it actually is much broader than that. In the International accounting standards (IAS) you will actually find a whole chapter dedicated to this topic called IAS 24. And in local accounting law, such as in the Netherlands, there is a requirement to identify transactions between related companies that are not in line with market conditions, or in other words not ‘at arm’s length’.
If the transactions between two companies are priced incorrectly, then the accounts of both companies are in the end incorrect as well. Those local accounts are the base for local tax returns. Having correct transfer pricing in place basically kills two birds with one stone. It solves the issue for both accounting and tax purposes. That is why transfer pricing is relevant for accountants 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:
Build your tax image
Tax Transparency Report: improve your company's tax image
Accountability
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