Season 2 Episode 7:
Transfer Pricing Explained: Getting It Right Across Borders
Podcast: Play in new window | Download | Embed
Subscribe: RSS
Watch on YouTubeWhat is transfer pricing, and why does it matter more than ever for global businesses?
In this episode of Under the Basswood Tree, we unpack how companies price transactions across borders, the role of the arm’s length standard, and how to build a defensible strategy supported by real data and documentation.
This episode covers:
-
What is transfer pricing?
Transfer pricing refers to how multinational companies set prices for transactions between related entities across different countries, impacting both tax obligations and financial reporting. -
What is the arm’s length principle?
The arm’s length standard requires that transactions between related entities be priced as if they were conducted between independent, unrelated parties. -
How do companies determine fair pricing?
Businesses analyze comparables, functions performed, risks assumed, and contractual terms to establish a defensible pricing range. -
Why documentation is critical in transfer pricing?
Tax authorities expect clear, consistent documentation that supports pricing decisions and reflects the economic reality of the business. -
How often should transfer pricing be reviewed?
Transfer pricing should be reviewed annually to reflect evolving business models, market conditions, and operational changes.
Host: Chris Klug
Chris is a trusted attorney with extensive experience in taxation, corporate planning, mergers and acquisitions, and estate planning. He guides clients through complex tax matters to deliver practical solutions.
Host: Renee Tiun
Renee, a foreign‑trained attorney and enrolled agent at Basswood Counsel specializes in U.S. domestic and cross border taxation. She brings over a decade of broad legal experience, including eight years working with complex U.S. international tax issues, offering clients a thoughtful, cross‑border perspective grounded in practical experience.
If this episode resonates with what you’re working through, contact info@basswoodcounsel.com. We’ll help you bring clarity to the key decisions, risks, and priorities, with the right support across our complementary practice areas.
Share:
More Podcasts
What Really Happens in an M&A Deal?
From first contact to post-closing integration, M&A transactions demand structure, foresight, and resilience. In this episode, we explain how understanding the process helps owners navigate risk, timing, and negotiation more
Coming to America: Structuring Your U.S. Expansion
For non-U.S. companies, the decision to operate in the U.S. is as much a tax decision as a business one. In this episode, we break down how footprint, structure, and
A Year of Change: Navigating New Rules in Securities, Crypto, and Financial Markets
A year of regulatory change has reshaped how businesses approach securities, fintech, and digital assets in the U.S. In this anniversary episode, Hazvinei Mugwagwa and Jephte Lanthia reflect on what
From Tax Cuts to New Opportunities: Key Highlights of the One Big Beautiful Bill Act
The One Big Beautiful Bill Act introduces significant and permanent changes that reshape tax planning for both individuals and businesses. In this episode, Chris Klug and Gina Lee walk through