An introduction to transfer pricing

Abstract

Purpose

The purpose of this paper is to introduce transfer pricing to a broader community of business leaders who might not be familiar with the importance of this concept. Transfer pricing is a term used to describe inter-company pricing arrangements relating to transactions between related business entities. These can include transfers of intellectual property, tangible goods, services, and loans or other financing transactions. Why is Transfer Pricing Important? The potential for US federal business tax reform and the rigorous pursuit of transfer pricing adjustments by foreign countries are among the top global tax concerns facing senior US tax professionals.

Design/methodology/approach

General viewpoint based upon years of consulting work on the topic.

Findings

The relevance and importance of transfer pricing is emphasized to a larger business community.

Practical implications

This is an excellent introduction to the topic of transfer pricing.

Originality/value

The paper is valuable in that it can be read and appreciated by a wide range of audiences.

Citation

Holtzman, Y. and Nagel, P. (2014), "An introduction to transfer pricing", Journal of Management Development, Vol. 33 No. 1, pp. 57-61. https://doi.org/10.1108/JMD-11-2013-0139