Episode 72 Transfer Pricing Strategies for Canadian Startups Going Global

We’re diving into transfer pricing strategies for startups who want to expand their businesses globally. Transfer pricing refers to the prices charged for goods, services, between related entities within a multinational enterprise (MNE). A Canadian startup with subsidiaries or parent companies in other countries may set transfer prices when trading internally across borders. These prices affect where profits are reported and, consequently, how much tax the enterprise pays in each jurisdiction.

For startups, understanding transfer pricing is essential for tax compliance, risk mitigation, and optimizing your global tax strategies.

I have the pleasure of welcoming Melinda Nguyen-Raybould, a Transfer Pricing Partner with MNP’s International Tax Group in Toronto. Melinda works with public and private multinational enterprises, as well as with domestic enterprises interested in international expansion, to manage the complexities of their cross-border intercompany transactions.

We will explore some key aspects of transfer pricing relevant to Canadian entrepreneurs, who are venturing into the US or internationally. What should they consider? How do they minimize the risk of tax penalties?