Case Study

7 Steps to Implementing an Operational Transfer Pricing Solution

7 Steps to Implementing an Operational Transfer Pricing Solution

Pages 11 Pages

2 7 Steps to Implementing an Operational Transfer Pricing Solution Operational Transfer Pricing, the mechanism for pricing the internal trading of goods and services within subsidiaries of organizations, was once considered to be an overall net zero-sum exercise. However, over time, operational transfer pricing (OTP), or intercompany transactions, became a substantial work activity and a source of strategic value for performance and incentive management, and presents significant financial value through tax strategy optimization. Substantial after-tax income can be influenced with entities whose purpose is to allocate the profit margin on an intra-enterprise business. OTP is now considered an important exercise, and complex corporate and legal structures and a commensurately

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