Location savings depend on facts of the case
October 08, 2007
K R Girish and Veena Parrikar, of KPMG, question one solution fits all for companies seeking transfer pricing savings from shifting activities offshore
Multinational companies seeking to move some of their operations offshore have two options: outsource to an overseas third-party vendor, or set up their own affiliates. As companies have increasingly chosen to establish captive units abroad, location savings and transfer pricing have become inextricably linked. Location savings refers to the benefits generated by moving functions or activities from a high-cost country to a low-cost country.

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