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Do most countries allow reimbursement to a parent company for shared services?

Do most countries allow reimbursement to a parent company for shared services? 

This question was asked by an attendee during the Proformative webinar “Bring Home the Money: The Profit Repatriation 101”; held on March 27, 2013. Join the discussion and add your insights below.

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

In short, most countries do allow it, but the devil is in the details. There are sometimes local laws regarding proof of service provided, there are transfer pricing regulations and there may be banking/foreign currency regulations.

Some require advance approval, so if your US CEO wants you to do a year end adjustment for the past 12 months, you may have a problem recovering it from the foreign sub.

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