it is explained even better than my lecturer did.... Your single table of showing the differences about how transfer pricing works is quite spot-on. Thank you.
but one thing I don't quite understand is...why would company B pay for more in the second circumstance, and where is the money from? secondly, company A seems to reduce profit by 10$ in order to reduce 2$ tax, why?
Janice Huang hello! Sorry I didn’t reply right away. To your question: it is because company A and B in that circumstance are actually part of the same company “AB”. Think of A,B, and AB as a family. Whatever A and B make goes to the “parent” company in the end- so AB may play games. If on paper they can make A and B earn different amounts in order to save on taxes, why not?
But why would company A only want to profit $10 and let B profit $30 wouldn't that be a terrible deal for A regardless of the extra money they would make in taxes?? I'm guessing because in this case, both companies are actually one.
In the 2 case if the company A sell the product at 60 then how will it get profit 10..and in how much the Company B sell product to public? I didn't get that.. Plz reply ma'am
A TO Z Everything is here the cost is 50 Dollars to produce. So selling it for 60 makes 10 Dollars profit for A. B sells for 90, so 30 Profit which means together it is still 40 Dollars. The point is if you make the prices like this, you save 2 Dollars on taxes while keeping the 40 Dollars sales from previously
it is explained even better than my lecturer did.... Your single table of showing the differences about how transfer pricing works is quite spot-on. Thank you.
I'm an accounting and finance grad and I never understood this concept clearly but your 2 min video summed it all up clearly. Thank you!
I laughed so hard when the Solo family portrait popped up. Thanks a lot for the explanation.
Great video, and the Solo family portrait was absolute class... thanks Andrea!!!
Thank you for making this subject crystal clear.
Seem like a fun career as a transfer pricing advisor, try to find a loophole from multinational regulations.
This is a lot better than many tutorials using technical jargon. Great work !
I think she did the simplest way to explain it
Short, clear and concise!
Best layman explanation of transfer Pricing on You tube.
simplest explanation i have got to date 👍
Out standing 🙏👍
Crystal clear !! Thanks your your valuable help!!!
Awesome video. Clear answer in 2 minutes! Thank you.
Great video mam.....thanks
Good sharing!
Very well explained, thanks to you
Thank you maam
Well Explained 👍
Thank you a lot, the video is brief and clear! Is there a possibility to make a video of transfer pricing end of the year adjustments?
thank you so much..
perfect simple explanation
Thank you !!
Ty i get it. Vry helpful
clear !!! thanks
What if the two companies are both on the same tax rate? Then Transfer pricing wouldn’t make any sense
Superb... thank you
love ur explaination....
Thank You!
Well explained
thank you !
Brilliant. Thank you.
Perfect, well done
what if company A and B are in the same country? does it matter what the transfer price is then?
but one thing I don't quite understand is...why would company B pay for more in the second circumstance, and where is the money from? secondly, company A seems to reduce profit by 10$ in order to reduce 2$ tax, why?
Janice Huang hello!
Sorry I didn’t reply right away. To your question: it is because company A and B in that circumstance are actually part of the same company “AB”. Think of A,B, and AB as a family. Whatever A and B make goes to the “parent” company in the end- so AB may play games. If on paper they can make A and B earn different amounts in order to save on taxes, why not?
As company A sells to B at lower rate(which was higher earlier) B's Cost declines and profit increases so B has to pay more tax.
is there any risk of under invoicing which is a Trade based money laundering?
Does B still sell to the public when A and B are related? Thanks.
Hello! What's the source of this example? I want to use it in my thesis :-)
Thank you👏
Thanks
But why would company A only want to profit $10 and let B profit $30 wouldn't that be a terrible deal for A regardless of the extra money they would make in taxes?? I'm guessing because in this case, both companies are actually one.
why cant they explain it as simple as this in class
😂😂😂 dude. I had to come to TH-cam to understand this
Our most beloved Godfather Shivbaba bless you always
In the 2 case if the company A sell the product at 60 then how will it get profit 10..and in how much the Company B sell product to public? I didn't get that.. Plz reply ma'am
A TO Z Everything is here the cost is 50 Dollars to produce. So selling it for 60 makes 10 Dollars profit for A. B sells for 90, so 30 Profit which means together it is still 40 Dollars. The point is if you make the prices like this, you save 2 Dollars on taxes while keeping the 40 Dollars sales from previously
the sound is not good I am quite disappointed
hey baby lol
Thank you!!