How can you explain the value of transfer pricing to investors?

Los precios de transferencia no son una opción, por lo que la adecuada gestión de los mismos no sólo es necesaria sino deseable. Una correcta implementación de políticas de precios de transferencia en un Grupo permite un mayor control y gestión de la actividad de negocio y, por tanto de la inversión financiera en última instancia.

Transfer pricing is like the corporate version of divvying up the dinner bill — it's all about who pays what within a company's family of entities. For investors, it's a peek into the company's kitchen to see if they're cooking the books or just whipping up some tax-smart savings. It helps investors navigate through the company's internal financial traffic, avoid potential tax pile-ups. And just like a good spice blend, it can make the difference between a bland investment and one with just the right amount of kick. While it may not be as thrilling as a secret family recipe, TP can spice up an investor's portfolio by showing how the company avoids getting grilled by tax authorities and serves up a hearty financial performance. Bon Appétit!

Transfer pricing is the process of assigning values to goods and services that move between different parts of a company that operates in other parts of the world. This can significantly impact profits and taxes, so investors pay close attention. If done correctly, transfer pricing can help companies optimise their profits and tax payments, ultimately increasing shareholder value. It is essential to be transparent and fair when dealing with transfer pricing. This helps build trust and credibility with investors and makes the company more attractive to potential investors.

Here are some key points to consider: 1. Profit Shifting: Transfer pricing can be used to shift profits from high-tax jurisdictions to low-tax jurisdictions. This can potentially reduce the overall tax burden of the company, leading to higher profits. 2. Transparency and Disclosure: Inaccurate or misleading transfer pricing practices can impact the transparency and disclosure of financial information provided to investors. 3. Compliance and Regulations and Risk of Disputes: Transfer pricing is subject to scrutiny by tax authorities, and disputes can arise between companies and tax authorities. Non-compliance with transfer pricing regulations can result in penalties and reputational damage.

A notable TP policy and documentation in place is an important aspect in case of acquisition. TP policy and documentation would be a point of attention for potential buyers, thus vendors having suitable TP n place is significant for tax due diligence cases

The more compliant the target is in case of acquisition, including TP requirements - the better score it gets at the due diligence process. Having a compliant TP policy and documentation in place is vital for having a full due diligence study and securing no CIT risks would arise from TP perspective

Hay consecuencias evidentes de los precios de transferencia, tales como evitar sanciones o inspecciones fiscales, optimización fiscal de las bases imponibles, pero hay otras menos obvias e igualmente beneficiosas: Desde el punto de vista financiero los precios de transferencia aparecen como un elemento clave en crisis de liquidez dentro de un grupo. Desde el punto de vista de negocio, los distintos modelos de precios de transferencia (perfiles de riesgo limitado por ejemplo) pueden suponer un soporte operativo mediante el esclarecimiento de funciones y riesgos de una entidad.

La cultura empresarial dentro de un grupo es la base para que las comunicaciones relativas a las cuestiones de precios de transferencia sean exitosas. La gestión 360 de los proyectos financieros/de precios de transferencia, acompañada de una adecuada comunicación en tiempo y forma y, por supuesto las tecnologías adaptadas, garantizarán no solo el cumplimiento con las obligaciones fiscales sino una optimización de las inversiones.

In my experience, Effective transfer pricing, is very dependent on the experience, track record, and team chemistry , that has strong technology, component, that tracks and communicates, with all involved, investors, all levels of the project, to track and evaluate, Accountability, and progress, with the original, program, that allows for a shift in direction if it is called for. Its important that Management has the ability to see and do it.