The common term is used for enterprises having related-party transactions is transfer pricing. What is transfer pricing? Transfer pricing is a summary term in English refer to the exchange, purchase, and sale in enterprises having related-party transactions. Transfer pricing can be defined as businesses linked together in the same or different countries that trade with each other not at market prices in order to benefit from tax. Buying and selling prices can be raised or lowered depending on the setting of the business. In fact, transfer pricing can be seen as an act of corporate tax evasion, but it can be seen as an activity to optimize purchase and sale transactions to save tax costs.

At present, transfer pricing inspection is one of the most important contents and accounts for the highest collection of tax authorities. Therefore, businesses that fall under the regulations on transfer pricing need to prepare carefully before the tax authorities come to inspect.

.Transfer pricing is a matter of concern for businesses, but businesses often omit or do not know that they are required to declare and prepare documents related to transfer pricing.

in related transactions. Let’s review the formula firstly. EBITDA is equal to, Net profit from operations plus Loan interest expense plus Depreciation expense. EBITDA was born in 1980 in the United States with the purpose of searching enterprises that are in recession, but have overcome the recession, and survived. The researching experts found that enterprises could overcome the recession because they were able to pay 2 important compulsory debts in business, are government tax debt, and bank debt.

A good detective must have a rich imagination and think realistically hypothesize scenarios that occur in reality. The hypothetical scenario is Company A is the parent of Company B. A's headquarters has a corporate income tax rate of ten percent, and B's headquarters has a corporate income tax rate of twenty percent. In the relationship of group A-B, how to make profit at A as much as possible, and B as little as possible.