Client Profile

Issue

An industrial valve manufacturer based in Houston manufactures in both the U.S. and foreign countries and distributes to more than 40 countries through local sales and distribution subsidiaries. With a small in-house finance department and broad international footprint, the manufacturer needs assistance with its increasingly complex international transfer pricing regulations and growing burden of annual transfer pricing documentation requirements.

Solution

Our team streamlines the manufacturer’s reporting obligation by performing 15 separate local jurisdiction specific transfer pricing studies annually. We stay current with local transfer pricing requirements and provide analysis and documentation for various intercompany transactions to ensure compliance with local tax and transfer pricing laws. We also evaluate whether the manufacturer is applying optimal transfer pricing methodologies.

Outcome

The manufacturer’s sizeable geographic footprint makes it subject to regulators in numerous countries. Our approach to transfer pricing documentation provides dynamic exposure in a changing regulatory environment as well as an efficient and cost-effective outcome for the company, allowing in-house finance team resources to focus time and efforts on other internal priorities.

Optimizing Transfer Pricing Application

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CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).