Built at The AI Conference Hack Day 2026

TP Copilot

Big companies have branches in lots of countries, and those branches sell and provide services to each other all the time. You cannot just keep moving profits to the country with lower corporate taxes, there are global as well as country specific regulations on that. Just imagine you building a company it doing super well, you keep building branches in multiple countries and bam one day you are slapped with a multi million paneity because you did not care about what portion of the profit should be moved where. Here in our example, the US headquarters makes sensors and sells them to its own German branch, which resells them to European customers. The question is: what price does HQ charge Germany? That internal price decides where the profit lands, and so which country gets to tax it. Charge Germany a lot, and Germany looks barely profitable and pays little German tax. Tax offices know this trick. So the rule is: you must charge what two unrelated companies would agree on. And you have to prove it: you find similar independent companies and show your profit sits inside their range. That's the benchmark. Every multinational has to do this for every country, every year. Get it wrong and you face adjustments, penalties, and double taxation.