If we noticed that many companies charge management fee as part of the transfer pricing strategy. So what type of services can we name so as to able to justify charging management fee?
Append below are examples that you may considered to draft as management services for charging the management fee. The quantum and justification need to be reviewed on a case to case basis by individual company:
- Supervise and guide the management and operating activities of the business in ensuring that such activities accord with the overall business policies and strategies of the group;
- Marketing and promotion which shall include developing marketing strategies;
- Advise the industry and competitive environment,advise and assist on developing the appropriate competitive strategy;
- Assist in improving production quality and efficiency;
- Provide public relations and other media assistance relating to advertisements and press releases;
- Provide public relations and other media assistance relating to advertisements and press releases;
- Provide financial advise on treasury activities undertaken by the subsidiaries/related companies and arrange the necessary funding and financial assistance required for purposes of the business and
- Provide financial analysis of opportunities and costs.
Refer to another article on a more comprehensive list of management services.
- A Comprehensive List of Management Services
- Financial Operations:Audit Fee Management
- How To Recognize Franchise Fee As Revenue
- Transfer Pricing System:Core Documentation File (Part A)
- Transfer Pricing Systems:Methods &Selection(Part C)
- Transfer Pricing System:Definitions &Relevant Acts (Part B)
- TRANSFER PRICING IS AN IMPENDING MAJOR TAX CHALLENGE FOR COMPANIES ESPECIALLY MULTINATIONALS

FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach.
Recent Comments