What is a Transfer Price?

This video explains what a transfer price is, and how companies can use transfer pricing to shift profits and avoid paying taxes.

[@janicehuang5493]

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.

[@darkfeeels]

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!

[@ratebswais5884]

I laughed so hard when the Solo family portrait popped up. Thanks a lot for the explanation.

[@rahulpahuja4554]

This is a lot better than many tutorials using technical jargon. Great work !

[@kellurl7513]

Thank you for making this subject crystal clear.

[@mellowandblue]

Great video, and the Solo family portrait was absolute class... thanks Andrea!!!

[@YanTougas]

Awesome video. Clear answer in 2 minutes! Thank you.

[@sobankumar4927]

Crystal clear !! Thanks your your valuable help!!!

[@doseoffaiyaz]

Short, clear and concise!

[@kovidverma]

Best layman explanation of transfer Pricing on You tube.

[@khawajaokasha8968]

simplest explanation i have got to date 👍

[@isha7372]

I think she did the simplest way to explain it

[@senriquesworld5873]

Very well explained, thanks to you

[@phonlawutchansri7083]

Seem like a fun career as a transfer pricing advisor, try to find a loophole from multinational regulations.

[@NarendraKumar-db4oq]

Out standing 🙏👍

[@kutekuck]

Thank you !!

[@ekaterinadorofeeva4245]

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?

[@agentwolf8588]

Great video mam.....thanks

[@Magnate1992]

Brilliant. Thank you.

[@chadjoyce9147]

Perfect, well done

[@uditarora6451]

Well Explained 👍

[@dhruwinnninama4549]

Superb... thank you

[@youssefmakki6730]

perfect simple explanation

[@TheMindyChoo]

clear !!! thanks

[@simplifyadventures4k]

thank you so much..

[@vinigill3732]

Ty i get it. Vry helpful

[@veronicakwok378]

Good sharing!

[@AishHumairaa]

thank you !

[@preparewithme19]

Thank you maam

[@Jeremiah0809]

Thank you👏

[@lostrook1]

what if company A and B are in the same country? does it matter what the transfer price is then?

[@welearn4466]

Well explained

[@taradebosschere1285]

Hello! What's the source of this example? I want to use it in my thesis :-)

[@ashrafulsarkar]

is there any risk of under invoicing which is a Trade based money laundering?

[@yujingtao5289]

Does B still sell to the public when A and B are related? Thanks.

[@amirahrosli1482]

love ur explaination....

[@andreahonig2015]

Thank You!

[@Saurabh.2075]

Thanks

[@zainabolayiwola5870]

What if the two companies are both on the same tax rate? Then Transfer pricing wouldn’t make any sense

[@janicehuang5493]

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?

[@a.j.h3401]

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?

[@pmsvillage6866]

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.

[@utharavishnu9467]

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

[@tombarsens1277]

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

[@themoneyman1752]

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.

[@bresomgng784]

why cant they explain it as simple as this in class

[@ipelengsegang5408]

😂😂😂 dude. I had to come to KZbin to understand this

[@user-God-s-child-0101]

Our most beloved Godfather Shivbaba bless you always

[@user-co5og2ol4i]

the sound is not good I am quite disappointed

[@rakeem6672]

hey baby lol

[@h6words]

Thank you!!