PR Advantage is pleased to offer a free webinar series on transfer pricing!
What is transfer pricing?
Some entrepreneurs who relocate to Puerto Rico have existing businesses that continue after their move, which gives them the opportunity to use a PR Export Services company to provide management and other services from PR. Once they have relocated to PR, formed a new business here, and applied for the Act 60 Export Services tax incentive, their new PR company becomes a service provider to the pre-existing business.
Such business owners may have controlling interest in both companies, which means the relationship of the two businesses is not “arm’s length”, from a tax perspective. If this describes your strategy, you may need to consider transfer pricing. It doesn’t affect everyone who moves to Puerto Rico, but for some business owners, it can be an important consideration. This page provides a bit more detail.
Free Webinar Schedule
Because many of our clients have had questions about transfer pricing, PR Advantage has partnered with an experienced firm to offer a free, educational webinar series about transfer pricing. Come and get your questions answered by an expert who has helped many other Act 60 applicants. We are offering the following timeslots:
| Session date | Registration link |
| Tuesday, February 14, 2023 | 4-4:30pm PR time (12-12:30pm Pacific time) |
| Wednesday, February 15, 2023 | 1-1:30am PR time (12-12:30pm Eastern time) |
FAQ
Here are some common questions about this issue, as a preview for what we will discuss on the webinar. We encourage you to send additional questions in advance of the session, to ensure the best chance that we can accommodate them.
| Q: What is transfer pricing? | A: Fees paid by a company you own or control to another company you own or control. |
| Q: Why does it matter? | A: This type of vendor relationship is not “arm’s length”, because you control both sides of the transaction. |
| Q: When would this affect you? | A: In an audit, transactions that are not “arm’s length” could result in fees, penalties, and back taxes owed. |
| Q: What can you do about this? | A: Obtain a Transfer Pricing Study from a qualified 3rd party vendor to set the prices one of your companies charges the other company. |
We look forward seeing you on the webinar! Don’t forget to send us your questions in advance.