Typically, it is Multinational companies that have to prepare Transfer Pricing documentation by law and therefore need to carry out Transfer Pricing analysis and prepare documentation. However, in practice any public or private company with international operations may require Transfer Pricing services, for example if a company has foreign manufacturing subsidiary, or distributor in another country, or has employees working in several countries.
Companies can use Transfer Pricing services to: define international Transfer Pricing policies set appropriate prices and rates in related-party contracts define proper commercial terms, allocate legal and commercial risks in related-party deals allocate revenues, expenses or margins among group entities according to their value-adding involvement defend appropriate pricing levels to tax authorities prevent inadvertent tax disputes and claims