Closing of Fiscal Year 2022
Panama City, March 1, 2023
The end of the fiscal year is an important time for companies to evaluate their financial performance. Transfer pricing is one of the key considerations when evaluating the financial performance of the company, since it affects the profitability of the company, its tax obligations and the general competitiveness of the company.
The transfer price is the price of goods and services between related companies within a corporate group. When it comes to the end of the fiscal year, the transfer pricing implications become particularly important. Companies should take the time to review their pricing strategies to ensure that all transactions are conducted in accordance with the arm’s length pricing principle and that their prices are fair and reasonable. This includes making sure that the prices charged to related companies are not below market prices.
Companies must also consider the impact of transfer pricing on their tax liabilities and ensure they comply with local or international tax regulations. In addition to the market price principle, companies must also consider the impact of transfer pricing on their overall competitiveness.
They must also ensure that their pricing policies reflect industry standards and that their prices are in line with those of their competitors. This will help ensure that the company’s prices are competitive and that it can stay competitive in the marketplace.
For more information, contact us at rhurtado@tpconsulting.com or by phone (507) 203-6771 | (507) 203-6770 | (507) 221-8664.
