Why TP Doc it’s important?
Transfer pricing is the company’s policy in determining the transfer price for transactions in goods, services, intangible assets and financial transactions into the company’s activities. Can also be interpreted as the amount of the price charged on the company’s individual business units of multi-unit business transactions that occur between them.
Each business unit uses this concept if the business is used as a a profit center, as well as having responsibility for profits derived from investment. Through the application of transfer pricing, the company can make reporting a loss so it does not have to pay taxes.