How to Calculate and Who is Entitled to the Additional Profit from Location Savings? (Japanese text)
1 December 2005
Japanese corporations are increasingly shifting their manufacturing bases to neighboring Asian countries in order to save costs on employee wages, equipment, and materials. Such location savings are becoming an important issue in the transfer pricing analysis for Japanese multinational companies. In this article, published in the December 2005 issue of International Taxation, NERA Senior Vice President Nobuo Mori and Vice President Makoto Ikeya discuss the logic and methodology for quantifying location savings and whether the parent or subsidiary is entitled to the additional profit from the savings.
This article is available in Japanese only.
