Transfer Pricing Basics: How Much Should One Company Charge Another? (Intercompany Billing 2/3)

Описание: Orbiss provides U.S. accounting for international groups, intercompany billing included.
https://www.orbiss.com/services/accou...

Intercompany pricing explained: how related companies determine appropriate charges for services and shared costs using the arm's-length standard and transfer-pricing methods.

For international businesses, determining how much one company should charge another involves more than simply selecting a convenient amount.

In this video, we explain how intercompany charges are determined, why the arm's-length standard matters, and how transfer-pricing methods apply to transactions between related entities.

We discuss how businesses identify the services provided, determine which entity benefits, and calculate the associated costs. We also explore common pricing approaches, including cost-based methods, markups, and comparisons with independent transactions.

We explain why certain qualifying services may be charged at cost under the U.S. Services Cost Method, and why not every intercompany transaction qualifies for the same treatment.

For international groups, understanding the underlying transaction and applying an appropriate pricing methodology is essential for supporting intercompany charges and managing tax compliance.

Watch the full series, with transcripts, on orbiss.com:
English: https://www.orbiss.com/resources/vide...
Français : https://www.orbiss.com/fr/ressources/...
Español: https://www.orbiss.com/es/resources/v...

About Orbiss

Orbiss provides U.S. tax, accounting, payroll and advisory services for international companies expanding into the United States. Founded in 2020, Orbiss works with 600+ international clients.

Disclaimer

The information provided in this video is not, and is not intended to, constitute legal or tax advice; instead, all information, content, and materials contained in this video have been prepared for general informational purposes only. Information contained in this video may not constitute the most up-to-date legal, tax or other information and no representations are made that the content is error-free.

You should contact your CPA or attorney to obtain advice with respect to any particular tax and legal matter. You should not act or refrain from acting on the basis of information contained in this video without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual CPA or attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.

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