We are offering transfer pricing services and tax solutions for international transactions between related parties. Our expertise in Israeli and foreign tax requirements enables us to provide proficient and effective service to our clients.
Globalization allows your business to operate in more than one country and to build a multinational business and sometimes you are required to provide services or product from one country to another one. You need to take in consideration that you are obligated to pay tax when you are doing so.
When setting the transition price between two parties you need to remember mispricing is a serious tax offense. That is why you should consult a taxation expert before you are setting the price.
The IRS regulations set guidelines for international transactions between related companies, which include detailed documentation of the transfer pricing, such as disclosure of the identities of the parties involved, transaction details and a statement that the transaction was made at market prices.
Our experts' recommendation is to set the transition price during the pre-ruling stage. This way we can provide you with the most accurate and relevant consulting regarding the transition price that meets the international regulation and your obligation by law.