Transfer pricing with confidence
Transfer prices assign value to all elements of a company’s value chain. Transfer prices are closely scrutinized by a range of stakeholders: internal management, fiscal authorities, regulators, investors, and even the public. As companies grow in complexity and across jurisdictions, the transfer pricing challenge increases exponentially.
- What's at stake?
- KPMG can help
- Innovation and insights
What's at stake?
The Organisation for Economic Co-operation and Development’s (OECD’s) base erosion and profit shifting (BEPS) initiative has put the spotlight even more on transfer pricing. BEPS and associated increased reporting requirements have put a premium on streamlined tax and transfer pricing data systems. More than ever, companies need to have well-developed and clearly documented transfer pricing policies, the agility to adjust transfer prices to changing circumstances, the ability to efficiently comply with complex reporting requirements, and a strategy for responding to related inquiries. Failure to do so can result in increased costs, time-consuming audits, unexpected tax adjustments, penalties, interest charges, and negative publicity.
KPMG can help
KPMG LLP's transfer pricing professionals (part of the Economic & Valuation Services practice) can help address your transfer pricing challenges. We are supported by global transfer pricing professionals from our KPMG member firms, helping us look beyond borders and understand the nuances of different national regulations.
Our transfer pricing professionals can assist you with:
- Planning: Assist in the development of economically supportable transfer pricing policies and the execution of sustainable tax planning
- Compliance and documentation: Provide insight into and prepare documentation of transactions between related parties for consistency with the arm’s-length principle
- Implementation/operational transfer pricing: Advise on and assist with developing and implementing policies, procedures, and technology solutions for setting, monitoring, and documenting intercompany tax transactions
- Dispute resolution: Help resolve transfer pricing disputes through various services, including transfer pricing examinations, appeals and alternative processes, advance pricing agreements, the competent authority process, and arbitration
Innovation and insights
KPMG is continually investing to help our clients find ways to drive more value from their transfer pricing efforts.
KPMG Digital Gateway is a central platform to access systems that will help a company securely monitor and manage their tax activities, stay current with industry news, and connect with specialized practitioners across the KPMG organization. This proprietary, cloud-based platform empowers companies to adapt to the ever-growing expectations of internal stakeholders, management, business partners, and regulators. With KPMG Digital Gateway, companies can see into their global landscape with advanced analytics and reporting, so that their global tax team can improve tax-function governance, manage risk, and provide actionable insights.
KPMG tpEngineTM enables automation in the thorough compliance process from understanding the deadlines, managing the process, and loading data, to analyzing comparables, producing reports, and performing report translations.
KPMG Country-by-Country Risk Analyzer evaluates potential risks in a company’s tax structure by analyzing more than 30 factors and uses interactive data visualizations to provide current and future insights into the risks and their underlying factors.
KPMG Tax Controversy Tracker provides a customizable approach to audit defense with real-time visibility and analytics on open controversies around the world, including current status, pending due dates and milestones.
Building, Construction, and Real Estate
KPMG Destination Country X | Episode 05-2022: Podcast on transfer pricing developments in Mexico that may affect U.S. multinationals with manufacturing operations in Mexico
Learn more about how transfer pricing practitioners can respond to ESG-related changes in this article by Jessie Coleman and Jack O'Meara, principals in the KPMG Washington National Tax, Transfer Pricing practice.