What Is a Foreign Subsidiary? Definition, Benefits, and Examples
Learn what a foreign subsidiary is, how it operates, and why global businesses use them to expand internationally with legal protection.
Quick Insight: Understanding Transfer Pricing 🔍 |
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Transfer pricing refers to the regulations and methods for pricing transactions within and between business entities under common ownership. Typically these transactions pertain to the sale of goods, services, and intangible assets. It's a crucial factor in international business, as it ensures that transactions are conducted at a fair market value. |
If your business regularly conducts transactions across borders, getting a handle on how transfer pricing works can make or break your compliance. BDO offers specialized global transfer pricing services, helping businesses manage intercompany pricing while staying in line with international regulations. In this article, we review BDO’s transfer pricing services, fees, and whether it could be the right fit for your needs.
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Yelp rating | 1.6/5¹ |
BDO is one of the largest global accounting networks offering a wide range of tax transfer pricing services. With offices in over 160 countries, they bring deep expertise in local transfer pricing rules, backed by international coordination.² Their services span from initial planning to documentation and audit defence, giving businesses a full-stack transfer pricing advisory experience.
BDO’s key differentiators include:
Their global transfer pricing services include support for Advance Pricing Agreements (APAs), which help businesses secure long-term clarity around their transfer cost structures. BDO also provides strategic insights that assist clients in restructuring their supply chains or operating models in response to shifting tax regulations.
BDO is structured to handle complex, high-stakes transfer pricing projects. While this ensures quality, it may come with a learning curve. Businesses working with BDO typically undergo an onboarding process that involves collecting financial and operational data, aligning reporting systems, and reviewing intercompany pricing agreements.
Reviews on G2 mention that BDO’s consultants are responsive and flexible, adjusting quickly to client needs. However, some customers found the initial onboarding phase time-consuming.⁴
Additionally, customers working with multiple jurisdictions have noted that BDO’s global collaboration tools and regional coordination teams help streamline the documentation process. For companies subject to simultaneous audits or inquiries from multiple tax authorities, this is particularly handy.
BDO offers region-specific customer support, with a lead consultant or advisory team dedicated to each client. Customers can expect regular consultations, email follow-ups, and advisory calls. While they don’t offer 24/7 customer support, the quality of service and responsiveness from their experts is highly rated, especially for ongoing advisory and audit support.
Clients managing multiple subsidiaries or transactions across borders often appreciate BDO’s centralized point of contact, which fosters consistent communication while tapping into the local expertise from in-country teams.
BDO’s transfer pricing services are customized, which means pricing varies depending on your project size, location, and complexity. Typically, you will need to have an initial consultation with BDO to discuss your specific needs before receiving a tailored quote. Based on industry benchmarks and customer feedback, here are typical fee expectations:
International fees: Extra costs may pop up when documentation must align with multiple local jurisdictions or when separate teams are involved for various regions. If you have subsidiaries in high-compliance regions like the European Union or Asia-Pacific, expect higher documentation and advisory fees.
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BDO brings a robust and flexible approach to transfer pricing. Their combination of local and global expertise helps businesses stay compliant in multiple jurisdictions, especially since there’s growing scrutiny from tax authorities. If your company operates in several countries, BDO’s consultants can help design pricing models that align with both international frameworks and local regulations.
Additionally, their end-to-end service, from initial planning to dispute resolution, makes BDO ideal for businesses that want long-term transfer pricing solutions rather than one-off documentation. Their ability to represent clients during tax audits and advise on legal structures adds significant value.
BDO’s consistent investment in thought leadership and global tax studies also helps clients stay ahead of regulatory shifts. Their publications on evolving transfer pricing frameworks, digital taxation, and indirect tax implications are widely regarded in the industry.
The main drawback is cost. BDO's premium consulting model is best suited for medium to large enterprises with regular intercompany activity. For small companies or those just starting to expand internationally, the high fees and complex processes may be overkill.
Another consideration is the lack of a digital-first experience. Unlike some newer providers that offer online dashboards or automation, BDO relies heavily on direct consultant engagement, which can slow turnaround times for simpler needs.
Because service delivery depends on regional teams, consistency in deliverables and turnaround time may also vary slightly across locations. That means added project management on the customer’s side.
If you’re managing transfer pricing international compliance across multiple entities and jurisdictions, BDO offers deep experience, specialized knowledge, and global infrastructure. Their transfer pricing consultants are particularly effective in navigating tax authority requirements, managing intercompany pricing strategies, and supporting dispute resolution.
However, if your primary concern is cost-effective international payments, especially between branches or suppliers, Wise Business may be the smarter option. While BDO covers compliance and planning, Wise simplifies the actual movement of funds. In many cases, the best approach may be to combine the strengths of both: Use BDO for strategic tax transfer pricing, and Wise Business for low-cost, transparent international payments.
Wise Business can help you save big time on international payments.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.
Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.
Some key features of Wise Business include:
Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers
Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local
Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account
Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met
Free invoicing tool: Generate and send professional invoices
No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here
Transfer pricing rules are regulations governing how prices are set for transactions between related companies across borders. These rules aim to promote fair taxation by aligning transfer prices with market values.
Transfer pricing services include planning, documenting, benchmarking, and audit defense related to intercompany pricing. Firms like BDO provide these services to help businesses comply with local and international tax laws.
Transfer pricing consultants are tax professionals who advise businesses on setting, documenting, and defending prices charged between affiliated entities. They often work for firms like BDO.
Intercompany pricing refers to the value assigned to transactions such as sales, services, or royalties exchanged between affiliated companies. It must follow transfer pricing rules to avoid tax penalties.
Advantages include improved compliance, better global tax efficiency, and reduced audit risk. Disadvantages may include complexity, high costs, and the administrative burden of documentation.
Transfer cost refers to the internal price charges for goods or services exchanged between business units or subsidiaries of the same company. It impacts taxation and financial reporting.
BDO transfer pricing refers to the suite of services offered by BDO firms around the world to help businesses manage their intercompany pricing and stay compliant with tax regulations.
Tax transfer pricing is the use of internal pricing to allocate income between entities in different tax jurisdictions. It affects how much tax a company pays in each country.
Yes. Wise Business helps you move money between entities affordably and transparently, while BDO keeps your pricing structure compliant with international tax transfer pricing rules.
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*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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