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Transfer Pricing Basics – What Are They, and How are They Calculated?

Transfer Pricing Basics – What Are They, and How are They Calculated?

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October 2017

Today, it is easier than ever for multinational companies (MNCs) to locate operations and conduct business wherever in the world they please, given significant advances in technology, communications and transportation. Given this, MNCs often process numerous cross-border intercompany transactions each year, and as a result, there are many direct and indirect implications of this. Some examples include the effects of such transactions on tax rates, tax revenues that governments generate, shareholder wealth and corporate after-tax cash flow.

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