Transfer price - Finance Transfer Pricing by ClassOf1


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									              Sub: Finance                                                                       Topic: Transfer pricing

              Finding the transfer price in different situations.

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              Harpoon, Inc., is a U.S. multinational corporation that ships small appliances to its subsidiary in
              Austria. The marginal profits tax rate in the United States is 34 percent, and the marginal profits
              tax rate in Austria is 55 percent. The U.S. taxes foreign subsidiary income only when
              repatriated, and allows a credit for foreign taxes paid. Austria has a 20 percent withholding tax
              on dividend payments, for which the United States gives a complete tax credit.
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