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When Ganado USA exports parts to Ganado Europe, Ganado USA corporate income tax rate is 35% and Ganado Europe corporate income tax rate is 45%,
When Ganado USA exports parts to Ganado Europe, Ganado USA corporate income tax rate is 35% and Ganado Europe corporate income tax rate is 45%,
a. the transfer pricing does not affect the total income tax across nation.
b. Ganado should take high mark up policy to save tax.
c. Ganado should take low mark up strategy to save tax
d. each branch should produce its own parts.
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