Which of the following types of taxes are relevant to transfer pricing?
A) income taxes
B) payroll taxes
C) customs duties
D) value-added taxes
E) income taxes, payroll taxes, customs duties, and value-added taxes

Question

Quizplus · Accepted Answer

All of the listed types of taxes can be relevant to transfer pricing. Income taxes are directly impacted by the revenues and profits reported by multinational companies through their transfer pricing practices. Payroll taxes can affect the cost base of a company in different countries and therefore have an impact on transfer pricing. Customs duties can impact import and export prices between related parties, while value-added taxes (VAT) can impact the supply chain structure and pricing of goods and services traded between related parties.

Which of the Following Types of Taxes Are Relevant to Transfer