As a rule,payments to and from foreign affiliates

Question

Quizplus · Accepted Answer

Payments to and from foreign affiliates typically involve both transfer pricing and accounting values assigned to goods or services exchanged between the affiliates. Transfer pricing refers to the price at which goods or services are transferred between affiliated entities, and it is often used to optimize tax benefits or shift profits between countries. Accounting values, on the other hand, refer to the values assigned to the goods or services for internal accounting purposes, and they can be used to track performance or allocate costs between the affiliates. Therefore, both transfer pricing and accounting values are important considerations in payments to and from foreign affiliates. Tax credits trading is not typically involved in these transactions.

As a Rule,payments to and from Foreign Affiliates