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 🔍 |
---|
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 you’re managing international business operations, finding the right provider to handle transfer pricing is important for compliance and cost efficiency. In this article, we’ll explore the KPMG transfer pricing guide, its features, fees, and whether it fits your business needs.
We’ll also go over how Wise Business can be a sound alternative to help you send and receive international payments quickly and easily.
Looking to send and receive international business payments?
Try Wise Business ->
Table of contents |
---|
Key features |
|
Main fees |
|
Great for |
|
Trustpilot rating | 1.6/5¹ |
KPMG offers one of the most comprehensive global transfer pricing services available. These services cover every aspect of international transfer pricing, from planning to documentation, dispute resolution, and operational implementation. KPMG helps create compliant and defensible transfer pricing models across jurisdictions.
Some highlighted features include:
KPMG’s technology-backed tools also support ongoing transfer pricing monitoring. Their operational transfer pricing services leverage automation and analytics to reduce manual errors, enhance security, and ensure real-time compliance. These features are especially useful for businesses operating across tax jurisdictions that require real-time reporting and audit readiness. Additionally, KPMG regularly publishes research and insights to help clients keep up with changing global tax regulations.
Transfer pricing with KPMG is designed to be thorough, but it may not be simple or fast. Their large-scale, in-depth analysis can be overwhelming for smaller teams or new international businesses.
According to G2 reviews, clients appreciate the detailed documentation and expert support.³ However, some users cite challenges with speed and accessibility for smaller, less complex needs.
The onboarding process usually involves multiple consultations and data requests, which can take time. Still, many businesses find that the initial effort pays off with long-term stability and fewer surprises during tax audits. Once implemented, KPMG’s models are known for being resilient and defensible under scrutiny.
KPMG offers global support through its network of offices in over 140 countries.² Customers typically communicate with a dedicated client team via email or scheduled calls. While there’s no live chat or 24/7 hotline, high-level client support is offered through consultations and ongoing advisory services.
Their teams include economists, data analysts, and legal experts who work together to provide tailored solutions. While smaller providers might offer quicker response times, KPMG stands out in its ability to handle highly complex or high-stake transfer pricing challenges.
KPMG does not publicly list fees for transfer pricing services, as pricing is customized based on the project’s scope, region, and complexity. However, here’s what you can expect:
International Fees: Additional fees may be incurred when cross-border regulations require local advisors or country-specific documentation. In highly regulated regions such as the EU or APAC, local documentation needs can significantly increase costs.
Benefits | Considerations |
---|---|
|
|
KPMG is known for its robust, end-to-end transfer pricing support. It provides a global team of tax professionals, industry-specific insights, and access to proprietary tools that help businesses structure their intercompany pricing to remain compliant and efficient.
Its services are particularly beneficial for large multinational or high-growth companies entering new markets, where tax risk exposure is greater. The firm also assists in dispute resolution and Advance Pricing Agreements, which can offer long-term stability for businesses managing cross-border transactions.
Despite its strengths, KPMG may not be the right fit for every business. Smaller companies or those just beginning international operations might find the services too complex or expensive. The lack of fixed pricing can also make budgeting difficult. Without any on-demand digital tools or automated solutions, it may slow down processes for businesses that prioritize speed and autonomy.
For organizations that don’t need extensive documentation or that already have strong in-house capabilities, a more cost-effective or agile solution may be a better fit. When considering KPMG’s services, don’t forget to assess your internal resources and long-term goals.
If your business operates across multiple countries with complex intercompany relationships, global transfer pricing KPMG services offer the structure, strategy, and compliance you need. Their depth of expertise, combined with proprietary tools and international presence, makes them ideal for enterprise-level needs.
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 refers to the rules and methods for pricing transactions between related entities within a multinational company. It ensures that each entity records the proper amount of income and complies with local tax laws.
Intercompany pricing is the price charged between subsidiaries or divisions of the same company for goods, services, or intellectual property. To avoid penalties, these prices must comply with transfer pricing regulations.
A transfer price agreement documents the terms, methodology, and justification for the prices set between related companies. This can be a unilateral agreement within the company or a bilateral agreement with tax authorities.
Proper transfer pricing helps solidify tax compliance, reduce audit risks, optimize global tax strategy, and improve financial transparency across company divisions.
The KPMG transfer pricing guide is a resource that outlines rules, documentation requirements, and practices across various countries. It helps businesses stay compliant with local and international tax laws.
Wise Business offers transparent, low-cost international transfers using the real mid-market exchange rate. It’s ideal for making cross-border payments to suppliers, employees, or subsidiaries, and integrates easily with major accounting platforms to streamline your workflow.
Absolutely. KPMG can help define and document your transfer pricing models, while Wise Business can handle the actual money transfer efficiently and affordably. That balance helps you stay compliant and cost-effective.
Sources:
*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.
Learn what a foreign subsidiary is, how it operates, and why global businesses use them to expand internationally with legal protection.
BDO transfer pricing services are tailored for multinational intercompany transactions by focusing on planning, implementation, compliance and controversy.
PwC's transfer pricing services include compliance, planning, and technology-driven strategies for ensuring effective global transaction tax management.
A comprehensive guide on forming an LLC in New Jersey. Get essential insights on registration and compliance.
Learn how to source products from India, find reliable suppliers, and navigate challenges to maximize your business success.
This guide will explain the differences, use cases, and strategic value of RFIs, RFPs, and RFQs.