P4小册子-18.pdf

18: Dividend policy in multinationals and transfer pricing Topic List Multinational businesses operate through subsidiaries, affiliates or joint ventures in more than one country, and produce and sell products globally. Revenues are Dividend policy repatriated to the parent company in the form of dividends, royalties or licence payments. Overseas Transfer pricing operations’ ability to repatriate funds can have a major impact on the parent company’s ability to pay dividends to external shareholders and finance its investment plans. Dividend Transfer policy pricing Dividend capacity Dividend policy Revenue after operating costs, interest and tax The dividend capacity of a company depends on: after tax profits, investment plans, foreign dividends. + Dividends from foreign affiliates and subsidiaries -