As businesses expand, they must sort out the complexities of transactions between divisions, subsidiaries and companies that are under the same ownership but operate in different tax jurisdictions. As entity makeups become more complex and businesses span ever more jurisdictions, transfer pricing — determining the price charged for goods and services exchanged between these smaller entities — becomes more difficult. Here are a couple of simple lessons to orient yourself for this complicated task.
Yesterday, we released Chapter Nine of our Winning Globally eBook, "What Surprises Are Out There? Pay close attention to details to avoid costly problems down the road."
A half dozen Radius colleagues recently attended the South by Southwest festival (SXSW), in Austin, Texas. Along with cosponsoring an event, they met and talked with people who worked in a wide range of industries and who had a wide variety of backgrounds and interests.
Since international business ventures don’t always go as planned, a business considering global expansion should understand the costs and time associated with winding down host-country operations in the event that corporate strategy changes.
Yesterday, we released Chapter Eight of our Winning Globally eBook, "Transfer Expats or Hire Locals? The Pros and Cons of Each Approach."