{"id":5607,"date":"2021-03-15T19:30:00","date_gmt":"2021-03-15T19:30:00","guid":{"rendered":"http:\/\/cfostartup.la\/wp\/?p=5607"},"modified":"2021-03-15T19:38:24","modified_gmt":"2021-03-15T19:38:24","slug":"the-abcs-of-transfer-pricing-for-a-startup","status":"publish","type":"post","link":"https:\/\/cfostartup.la\/the-abcs-of-transfer-pricing-for-a-startup\/","title":{"rendered":"The ABCs of Transfer Pricing for a Startup"},"content":{"rendered":"\n
The Transfer Pricing Guidelines on financial operations \u2014 as the name indicates \u2014 are aimed at regulating inter-company financial operations, so that these are in accordance with the arm\u2019s length principle.<\/p>\n\n\n\n
When a startup goes international, there arises the need to analyze, fix and document the transfer prices. Where should I pay the income tax? Since the corporate tax rate is different in each country, it would not be surprising for startups or tech companies to try and keep their earnings in the country with the lowest rate. That is why it is important to understand that implementing a Transfer Pricing policy may determine the profitability of the different entities that make up the economic group. If said policy is correct and effective, it will not only prevent tax-related contingencies, but will also be useful to achieve greater efficiency.<\/p>\n\n\n\n